If you own a business of between 2 and 50 people, chances are you qualify for (and would benefit from) a group health insurance plan. Health insurance plan for small businesses has lots of benefits. Besides providing medical care for yourself and your employees, this health insurance plan helps spread the financial risk between all the members, which usually means lower premiums and more extensive coverage for everyone. But group health insurance has tax advantages too. Employer contributions to a small business health insurance plan are generally 100% tax deductible, and employees save on payroll taxes. Small businesses are generally eligible for group health insurance so long as they can show two or more full-time taxable employees.

Although rate calculations vary both from state to state and from company to company, the cost of a group health insurance plan is based on the characteristics of each member, including:

• age
• health status
• occupational hazard
• business and/or residential location

Employees of a business that offers group health insurance are not compelled to join the plan, but the group must maintain a minimum number of insured (as few as 2 people, depending on the policy) to guarantee coverage.