If you're a small business owner, you’ve likely wondered:

• Should I offer health insurance?

• Can I afford it?

• What are my options?

The good news is that offering benefits doesn't have to be overwhelming—or unaffordable. Whether you have 5 employees or 50, there are ways to provide meaningful coverage and boost retention without breaking your budget.

Why Offer Health Benefits?

• Attract and keep great employees

• Reduce turnover and improve morale

• Potential tax savings for your business

• Build a reputation as a people-first employer

Plus, health benefits aren’t one-size-fits-all anymore. There are more flexible options than ever for small teams.

3 Popular Health Coverage Options for Small Businesses

Traditional Group Plans

Offered through major insurance carriers and can include medical, dental, vision, and more. Premiums are usually shared between the employer and employees. You’ll typically need at least 5 enrolled employees to start.

Level-Funded Plans

A hybrid of fully insured and self-funded plans. These can offer cost savings and refund potential at the end of the year—ideal for groups in good health.

QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements)

Let you reimburse employees tax-free for their own individual health insurance premiums. These work well for very small teams or businesses that can’t meet the participation or contribution requirements of traditional group plans.

What If You Don’t Meet the Group Plan Minimum? 

If you have fewer than 5 full-time employees or high turnover, we can still help you explore:

• Private PPO options for owners and key employees

• ACA Marketplace options with individual subsidies

• Defined contribution strategies using tools like QSEHRA

Small Business Health Benefits: FAQs (Real Questions, Real Answers)

I'm a small business—do I really need to offer health benefits?

Not legally (unless you have 50+ employees), but here’s the truth: health benefits help you compete. Offering them shows your team you care—and helps you attract and keep great people.

I only have 3 employees. Are there any options for me?

Yes! You don’t need a big team to offer great benefits. We can help you set up flexible options like QSEHRAs or individual PPO coverage tailored for small but mighty teams.

Health insurance seems expensive. Can I afford it?

That’s exactly why Mere Benefits exists. We help small businesses find smart, budget-friendly solutions—including level-funded plans and tax-advantaged strategies.

What’s a QSEHRA—and is it complicated?

It stands for Qualified Small Employer Health Reimbursement Arrangement. Sounds fancy, but it’s super flexible. You give your employees a set allowance, and they choose their own insurance. We make it simple.

I’ve heard about level-funded plans. Should I consider one?

If your team is generally healthy, level-funded plans can save you money and potentially give you a refund at year’s end. We’ll help you compare options and see if it’s a good fit.

What if I don’t qualify for a group plan right now?

No worries! If you have fewer than 5 enrolled employees, we’ll walk you through alternatives—like private PPOs for owners/key staff or ACA plans with possible subsidies.

I don’t even know where to begin. What’s the first step?

Start with our free Group Census Template—or better yet, hop on a quick call. At Mere Benefits, we guide you step-by-step so you're never stuck or overwhelmed.

Will someone actually help me through this?

Yes—real humans, not robots. Our team specializes in small business health plans, and we’ll work with you 1:1 to design something that fits your goals and your budget.

What happens if my business grows or changes?

That’s the beauty of working with Mere Benefits. We’ll revisit your plan regularly and adjust it as your needs evolve. Think of us as your long-term benefits partner.

Is this going to take a ton of time?

Nope! We handle the heavy lifting—plan comparisons, rate shopping, timelines, and compliance. You stay focused on your business; we’ll handle the benefits.

We Make It Simple to Start

Our team specializes in small business health coverage. We help you:

• Compare group plans, QSEHRAs, and PPO alternatives

• Gather a census and shop rates quickly

• Understand contribution rules, compliance, and enrollment timelines

Need a place to start? Download our Group Census Template and complete it to get a customized quote.

Or explore our Group Benefits page to learn more.

Let’s Build the Right Benefits for Your Team Whether you're hiring your fifth employee or reviewing options for a growing team, we’ll help you build a plan that works for your people—and your budget.

Schedule a call and let’s walk through your options.

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