Alternatives when group quotes hurt
ICHRA lets you reimburse employees tax-free for individual-market plans they choose — fixed budget for you, choice for them, and employees can stack ACA subsidies if your contribution isn't 'affordable'. Level-funded plans suit healthy teams of 5–50. PEOs pool you into a large group but add admin fees.
- • Under 50 FTEs, offering coverage is optional — but it's deductible and a hiring edge.
- • Owner-only businesses can't buy group plans; look at individual + HRA structures.
- • Most carriers require ~70% participation — waivers for spousal coverage count.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
Car Insurance Cost Guide 2026: The 7 Factors That Decide Your Premium (and How to Cut It)
Why the same coverage costs $1,200 or $3,800, the state-minimum trap that costs people their savings, and the specific levers that cut auto premium 20–40%.
Read the guideRevenue per Employee Benchmarks 2026: SaaS, Services, Retail, and Why Apple Hits $2.4M
2026 revenue-per-employee medians by industry from public 10-Ks and BEA — what's healthy, what's dangerous, and how to actually move the number.
Read the guideFAQ
How much does health insurance cost per employee for small business?
Employers typically pay $400–650/month per employee for single coverage (75% employer share of a silver plan). Family coverage roughly doubles the gross premium.
What is the small business health care tax credit?
Up to 50% of the employer's premium contribution for businesses with fewer than 25 FTEs, average wages under ~$65K, purchasing through the SHOP marketplace, for up to two consecutive years.
Can I reimburse employees for their own plans instead?
Yes — an ICHRA (individual coverage HRA) lets you set a monthly tax-free allowance employees use on marketplace plans. It's now the fastest-growing small-business arrangement.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last editorial review
Reviewed on a rolling quarterly cycle. Dated reviews are published on the methodology record for each calculator.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.