Are you drowning in health insurance costs?

You're not alone. Small business health insurance is the #1 chronic pain point for entrepreneurs today. And the situation is only getting worse each year, with increasing premiums, fewer options, and more headaches.

But here's the thing…

Change is coming. While traditional policies keep getting more expensive and more complex, savvy business owners are discovering new ways to provide health coverage for their employees like small group health insurance that works and doesn't require a small business health insurance broker that breaks the bank.

The best part? These new options can actually perform better than what you're doing right now.

What you'll discover:

1. Why Traditional Health Insurance Is Failing Small Businesses
2. The Rising Costs That Are Breaking The Bank
3. The ICHRA Revolution That's Changing Everything
4. How To Make The Switch Without The Headaches

Why Traditional Health Insurance Is Failing Small Businesses

Ok, let's get real for a minute here – the traditional health insurance model is broken for small businesses.

Did you know only 53% of small employers nationwide even offer health insurance to their employees anymore? Barely half. And the ones who do? Yeah, they're getting steamrolled by the cost.

Why?

Because the insurance companies are abandoning the small group market faster than you can say "premium increase."

Humana pulled out of small group insurance completely in 2024. Cigna and Oscar Health ended their partnership. Aetna exited Connecticut's small group market entirely.

Less insurance companies means less competition. Less competition means higher prices. Higher prices means more small businesses drop coverage altogether.

It's a vicious cycle that's been accelerating for years.

The Rising Costs That Are Breaking The Bank

Let's talk numbers for a second.

Businesses are now paying an average of $1,232.59 per month for family coverage – just for the employer's portion. Before the employee even contributes a penny.

And it gets worse…

Premiums are projected to increase another 7% in 2025. Yeah, you read that right, 7% again. When you're already struggling to pay rent and payroll, those percentage points really add up.

Let's do the math:

1. You have 10 employees who qualify for family coverage
2. 10 employees x $1,232.59/month = $12,325.90/month employer portion premiums
3. $12,325.90/month x 12 months = $147,910.80/yr

Ouch.

That's more than the entire profit margin of most small businesses. Just in health insurance costs.

And no wonder so many are throwing in the towel.

The numbers don't lie. The cost of health insurance has become completely untenable for most small businesses. Something has to give.

The ICHRA Revolution That's Changing Everything

But here's where things get interesting…

A new option has entered the small business health insurance game that is completely disrupting the status quo. It's called an Individual Coverage Health Reimbursement Arrangement (ICHRA), and it's about to take off.

How about off?

Adoption of ICHRAs surged 29% from 2023 to 2024. Just like that, in one year. For a product that has only been available since 2020.

But that's not even the biggest stat…

83% of the businesses offering ICHRAs were able to provide health insurance for the first time in the company's history. 

Hold up…

That's not businesses just switching plans. That's businesses that couldn't afford to offer health insurance before, but now can.

Why ICHRAs Work When Traditional Plans Don't

Here's how an ICHRA works:

1. Instead of purchasing a group plan, you provide employees a monthly allowance
2. Your employees use that allowance to buy their own individual health insurance
3. You control the costs. They get the coverage they actually want.

Simple, right?

But here's the really cool part.

The results are outstanding. That's literally 83% of small businesses being able to offer health insurance for the first time ever.

How is this possible?

It comes down to flexibility. You decide how much to contribute to your ICHRA. If you can only afford $250/mo/employee, that's ok. Want to contribute different amounts for certain job categories? Go for it.

No minimum participation requirements. No having to pick an insurance company and then begging them to not raise your rates 10% next year. No stupid requirements. You call the shots.

And your employees get to pick their own plans too. High-deductible plans for young healthy workers. Comprehensive coverage for older employees with health conditions. If your employees are unhappy with the plans available, they can go find a new job.

Everyone is a winner.

The States Leading The Charge

Adoption of ICHRAs is happening all over the country, but some states are really racking up the adoption numbers.

Places like Alabama, Alaska, Idaho, Iowa are seeing 100% adoption rates for small businesses with 2-20 employees. Ohio, Indiana, and several others even offer tax credits to businesses that make the switch.

Momentum is building.

Not just small businesses either. ICHRAs are exploding in popularity among large employers (50+ employees) too, with an adoption rate of 84% growth over a single year. This isn't some flash-in-the-pan fad. When large companies are signing on like this, you know it's legit.

Making The Switch Without The Headaches

Thinking about taking the plunge and making the switch?

Here are some key things you need to know.

First, it's all about timing. You can't switch ICHRA mid-year unless there is a qualifying event. Most businesses will transition to an ICHRA at the end of their current plan year.

Second, clear communication is a must. Your employees need to know how ICHRAs work and what it means for them. The good news is most employees absolutely love being able to choose their own plans.

Third, you need to hire an administrator. With ICHRA there is no insurance company to handle everything for you. You'll need someone to manage reimbursement processing and compliance. Luckily, there are many companies cropping up now to specialize in this service.

What About Compliance?

Nothing to worry about here either.

ICHRA satisfy the employer mandate under the Affordable Care Act if you are a large employer. They are also tax deductible for the employer and tax free for the employee.

The rules are actually simpler than traditional group health plans. You just need to ensure that your contribution makes coverage "affordable" based on set federal guidelines.

The Hidden Benefits Nobody Talks About

Beyond just the cost savings, ICHRAs solve so many other headaches.

No more participation requirements to deal with. No more employees complaining about the network. No more last-minute scrambling to find a new plan because your carrier dropped your market.

Your costs are completely predictable. You decide how much you can afford to spend, put that number down, and that's that. No surprises.

Wrapping It All Up

Small business health insurance is at a crossroads.

The traditional system is in crisis. Premiums keep rising, options keep disappearing, and more and more businesses are forced to drop coverage altogether.

But there's hope on the horizon in the form of ICHRAs. With 29% growth in adoption and 83% of adopters offering benefits for the first time, it's clear this isn't just some insurance company gimmick.

Change is happening. The question is whether you will adapt to it or get left behind.

Already, smart business owners are making the switch. They're controlling their costs, empowering their employees, and finally solving their health insurance problems once and for all.

Will you be one of them?

The future of small business health insurance is here. It's flexible. It's affordable. It actually works.

Don't wait for things to get worse. Start exploring your options today.