Struggling to offer health coverage as a small business? These programs could help.

July 01, 2024

Owning a small business has its challenges. Among these is finding quality health insurance options that are affordable for both the company and employees.

According to the most recent Small Business Health Insurance Survey by the National Federation of Independent Business (NFIB) Research Center — the smaller the business, the bigger the challenge. Only a third of companies with one to nine employees offer health insurance compared to 89% that have 30 or more employees.

Although the majority of small employers believe offering health insurance helps them recruit and retain employees, the survey revealed the following reasons why they choose not to offer health care coverage:

• 65% say it is too expensive to provide.
• Employees have access to buy individual or family coverage through the Health Insurance Marketplace.
• Many employers think they do not have enough employees interested in group coverage.

More than one-third of small-business owners say they would consider providing benefits if they had more affordable options. Small businesses sometimes struggle to find affordable health insurance because they don’t know or understand all of their options.

Affordable health insurance options for small businesses in Florida

Florida Blue, Florida’s Blue Cross and Blue Shield health plan, offers a range of health and wellness services to help small businesses engage their employees and manage costs. Rachel Bechtel, vice president, commercial business strategy and market solutions with Florida Blue, says, “We have a comprehensive portfolio designed to meet the price points and coverage options employers want. We proudly serve the insurance needs of more than half of Florida’s small businesses, which gives us an incredible opportunity to hear from employers and better understand their unique challenges and how we can help solve them.”

Florida Blue has a portfolio of solutions and small group health insurance plans that include lower-cost options with a smaller network of providers (like SimplyBlue and Truli for Health), as well as plans with an expansive network (like BlueOptions).

Another great option is Florida Blue’s small group Balanced Funding solution. This arrangement combines elements of fully insured (where the employer purchases insurance from an insurance company) and self-funding plans (where an employer pays the benefits administration and absorbs the risk for managing its claim costs). With Balanced Funding, employers get fixed monthly payments, and if their group’s medical claims are lower than expected, they may be eligible for a credit. The healthier your group, the lower your costs. “While it provides the advantages of self-funding, which larger groups tend to use, there’s peace of mind associated with the stable monthly payment. With our level-funding solution, small businesses are able to budget without surprises. Plus, they can also earn money back if their claim costs are lower than anticipated,” Bechtel said.

Wellness programs are another popular way small businesses can manage costs. Florida Blue, for example, offers value-added health and wellness services like health advice from registered nurses and enrollment in personalized care programs through the local Florida Blue Centers across the state — all at no extra cost to the employee or business. This enables employers to engage employees in activities that help them live and work better. These services can help reduce health care costs, thereby saving money for both the business and its employees.

“Not implementing or taking advantage of wellness incentives or programs could be a missed opportunity,” Bechtel said. Florida Blue works closely with employers and their employees to make them aware of an array of health and wellness benefits that are available and how to use them effectively.

Agents and brokers are useful to employers looking for more health insurance options and help choosing the right plan

With a history of serving Florida for 80 years, Florida Blue also partners with agents and brokers across the state to help businesses find coverage they can depend upon. Enlisting the help of these advisors can make a big difference for small business owners when selecting the best health insurance solutions. 64% of employers reported using an agent or broker to purchase or renew coverage. Over half of those small business owners stated that their agent provided a variety of options — from group coverage to individual health insurance plans.

“Our agent and broker partners are highly knowledgeable about Florida Blue’s solutions and value-added programs and services. The key for a small business is partnering with an agent who understands the group’s needs and helps them pick the right solutions,” Bechtel said.

Regardless of the coverage they choose, an employer and their employees can take advantage of award-winning customer service teams, user-friendly digital tools, neighborhood Florida Blue Centers, and other resources and support to make the most of their benefits.

“Affordable health insurance is vital to employee wellbeing and the overall success of the business,” Bechtel said. “When businesses are thriving and their employees are healthy, productive and engaged, it has a ripple effect on the community and those around them.”

Health care costs may be rising, but small businesses can find affordable coverage when they know where to look and how to find the options available.

Learn more about Florida Blue

Florida Blue, the leading health insurer in Florida, has been providing health solutions to residents of Florida for nearly 80 years. Driven by its mission of helping people and communities achieve better health, the company serves more than six million members and all 67 Florida counties. Headquartered in Jacksonville, Florida, with more than 9,000 employees, it is an independent licensee of the Blue Cross Blue Shield Association.

For additional information visit floridablue.com. For the latest news and content, visit the Florida Blue Newsroom, and follow Florida Blue on Facebook, LinkedIn and Instagram @florida.blue; and X (formerly Twitter) @FLBlue.