Choosing a Health Insurance for Your Business

Choosing the right group health plan for your business involves balancing cost, coverage, employee satisfaction, and administrative simplicity. Here's how to navigate the decision.

Step 1: Determine Your Budget

Typical employer contributions range from 50–100% of the employee-only premium. The ACA requires that group plans be "affordable" — employee contributions cannot exceed a defined percentage of household income.

Step 2: Choose a Plan Type

• HMO: Lower cost, employees select a primary care physician, referrals required for specialists. Best for cost-conscious employers.
• PPO: More flexibility, no referral required, employees can see any in-network doctor. Higher premium.
• HDHP + HSA: High-deductible plan paired with a Health Savings Account. Lower premium, employees build tax-advantaged savings.

Step 3: Select Carriers

Peter shops your group across Blue Shield of California, Kaiser Permanente, Anthem, Cigna, UnitedHealthcare, and other regional carriers to find the best combination of network, benefits, and cost.

Covered California for Small Business (CCSB)

California's small business health exchange offers group plans for businesses with 1–100 employees. Employees choose their own plan within your contribution framework — offering flexibility without extra administrative burden.