What is the difference between small business health insurance and group health insurance?

Group health insurance is provided to members of a group of persons, as employees of one or more employers or members of associations or labor unions. The term is usually used to distinguish this type of health insurance from individual health insurance. Group health insurance has some tax advantages.

Small business health insurance is provided organizations or businesses with 2 – 50 people. A small business health insurance plan provides medical care for yourself and your employees, as well as helping spread the financial risk between all the members, which usually means lower premiums and more extensive coverage for everyone. Employer contributions to a small business health insurance plan are generally 100% tax deductible, and employees save on payroll taxes. Small businesses (and certain organizations, like non-profits) are generally eligible for group health insurance so long as they can show two or more full-time taxable employees.

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