Close this search box.

How to Get Small Business Health Insurance With Only One Employee

Small business health insurance for 1 employee

Instant Group Health Quotes


At least 2 employees are needed for a group.

Please contact us directly at (914) 633-1717 to inquire.

If you have more than 100 employees, you could qualify for discounted group rates.

Please contact us directly at (914) 633-1717 to inquire.

We Hate Spam as much as you do and Promise to Keep Your Email Address Safe.

How to Get Small Business Health Insurance With Only One Employee

There’s a common misconception that only big companies can afford quality health benefits. But here’s the truth: Whether you have one employee or a small team, there’s a wide array of health insurance options tailored to fit every budget and need.

This guide will shed light on the variety of small business health insurance options available. In this article, you’ll discover how you can you can get health insurance with only one employee.

Understanding Small Business Health Insurance

Health insurance for small business employees is not a one-size-fits-all solution. It’s an important detail that demands tailored consideration.
Having health insurance for even one employee is really valuable. It gives essential health coverage and boosts the company’s image.
A healthy employee contributes to a healthier business. Providing access to healthcare encourages preventive care. Improving attendance and creating a more productive workplace.

Providing medical insurance isn’t required for businesses with just one employee. However, as business grows, providing health benefits might become necessary. It’s important to stay informed of your legal responsibilities and stay updated on regulations.

Exploring Group Health Insurance In New York

In New York, small businesses have specific options when it comes to group health insurance. Even for a solo employee, understanding these avenues can be beneficial.

Group health insurance in New York is designed to accommodate the needs of small businesses. Including those with a single employee. These plans often offer a range of coverage options while considering budgetary constraints.By joining a group plan, you can access a wider network of healthcare providers. Making potential cost savings through group rates more attainable.

Take time to learn and understand state regulations for group health insurance. In New York, healthcare laws cover things like:

• Minimum participation requirements
• Contribution rules
• The types of insurance plans small businesses can access

Getting Health Insurance With Only One Employee

If you’re a solo entrepreneur or have only one employee, there are other health insurance options besides the typical NY small business group plans.

Here’s a quick overview of these healthcare options:

Health Reimbursement Arrangements (HRAs)

HRAs are setups funded by employers to reimburse eligible medical expenses incurred by employees. They’re especially helpful for small businesses with a small staff.
For a single-employee business, HRAs offer great flexibility. Allowing you (the employer) to define covered expenses and contribute funds your employee can use for healthcare.

Individual Health Plans

These are policies purchased by employees directly from insurers. They offer personalization but might lack the cost benefits of group plans.
Remember, even if you only have one employee, they could still qualify for a small group plan. These plans often provide broader coverage compared to individual health plans. However, keep in mind that they might come with higher premiums.

Health Savings Accounts

Health Savings Accounts (HSAs) are special savings accounts connected to high-deductible health plans (HDHPs). They’re designed to help people save money before taxes to cover health care needs.
Contributions made to an HSA are tax-deductible. Further reducing your (or your employee’s) taxable income. HSA funds can be used to cover any qualified medical expenses.

This includes things like:
• Deductibles
• Co-payments
• Prescriptions
• Health-related costs not covered by insurance

HSAs are also portable. This means the account travels with you (or your employee) even if they change jobs or health plans.
Unlike Flexible Spending Accounts (FSAs), where funds may expire at the end of the year, the money in an HSA rolls over year after year. Allowing for long-term savings and investment growth.

How To Choose The Right Health Insurance Plan

As a small business owner, you want to carefully consider both your needs and financial constraints. Same for your employee

Both of you should consider the following:
• Past medical expenses
• Expected future needs
• Any specific coverage preferences

Assess how much the business can afford for insurance premiums. Find a balance between getting good coverage and keeping the plan affordable.
Consult with insurance brokers or agents who specialize in small business coverage. They can provide insights into available options and tailor plans to your specific needs.

Get quotes and compare different plans. During your review, be sure to examine network providers and maximum yearly costs.
Check if preferred doctors, hospitals, or specialists are within the plan’s network. This will ensure accessibility to desired healthcare providers.

Cost Management and Tax Implications

Keeping health insurance costs manageable for a single employee in a small business is really important for financial stability. It’s equally crucial to understand the tax implications that come with it.Assess if it’s possible for the employee to help pay premiums. This can lighten the financial load on the company.

Think about choosing plans that have somewhat higher deductibles and co-payments. This can help lower your monthly premiums. However, make sure to weigh these reduced costs against the possibility of higher out-of-pocket expenses.

Check eligibility for the Small Business Health Care Tax Credit. This credit provides financial assistance to small businesses covering employee premiums.
Set aside a dedicated part of the business budget for healthcare costs to ensure continuous coverage without overburdening finances.

Last but not least, periodically review insurance plans to ensure they still meet the needs of the employee and the financial capabilities of the business.
By strategically managing costs and utilizing tax benefits, you can efficiently provide essential healthcare coverage while controlling expenses.

Get Expert Guidance For Small Business Health Insurance

Choosing the right small business health insurance is crucial for taking care of your employee and making sure the business stays strong. Get in the know about plans, tax perks, and saving strategies. Use this info to lock in the right health coverage for you.

Remember, prioritizing the health of your employee by providing suitable health insurance is not just a business decision. It’s a commitment to cultivating a thriving and sustainable work environment.

If you need help, don’t hesitate to contact HealthPlansNY. We’ll help you take proactive steps to secure the right coverage and contribute to the well-being of your business and its valuable team members.