ResourcesSmall Business Health Care Hub
How to know you have the right advisor
When choosing a health insurance plan, it's essential your advisor has the right expertise to help you make the best decision for your business.
Not ready to reach out yet?
Learn what questions to ask a broker to ensure they're the right fit for your business
Agents
BUSINESSES OF ALL SIZES, INCLUDING SMALL BUSINESSES
Agents are licensed professionals who represent insurance companies and sell their insurance products. They explain available options, assess your needs and recommend suitable plans. Agents help with applications, policy changes, renewals and claims.
Why choose an agent?
If you know the insurance company you want and need help enrolling, an agent can guide you through the process. They can represent one or multiple insurance companies.
Consider the tradeoffs:
- In-depth knowledge of specific insurance products to help design your plan
- Personalized service and advice tailored to your needs
- Strong relationships with insurers, potentially offering better rates.
- Limited to the products offered by the companies they represent
- May not offer the full range of options available in the market
Fees
Agents typically receive a salary or commission from insurance companies. They may earn commissions from insurers, which they must disclose to you. Be sure to ask about their compensation when you start working with them.
Get started
- Find an insurance agent through your State Department of Insurance or through the SHOP Marketplace.
- Before engaging with an agent, check for any filed complaints using the National Association of Insurance Commissioners Consumer Insurance Search System or call your state insurance department. Find this contact information on our State Resources page.
Brokers
BUSINESSES OF ALL SIZES
Brokers are experts who help businesses find and compare health insurance plans from various insurers. They guide you in choosing the best plan for your needs, assist with enrollment, handle administration, negotiate terms and support you with claims and renewals.
Why choose a broker?
Brokers are ideal if you need help comparing options from different insurance companies and managing your plan.
Consider the tradeoffs:
- Access to a wide variety of plans from multiple insurers
- Skilled in comparing options and negotiating rates
- Help with plan administration, including employee support
- Plan quality and options can differ between brokers
- Brokers may receive incentives from insurers, like commissions
Fees
Brokers usually don't charge directly but may earn a fee or commission, paid by the insurer or your business. They must disclose any commissions to you, so ask about their compensation up front.
Get started
- Find an insurance broker through your State Department of Insurance or through the SHOP Marketplace.
- Before engaging with a broker, check for any filed complaints using the National Association of Insurance Commissioners Consumer Insurance Search System or by calling your State Insurance Department.
- Learn what questions to ask a broker to ensure they're the right fit for your business.
Professional Employer Organization (PEO)
SMALL TO MEDIUM-SIZED BUSINESSES
PEOs provide a full range of HR services, including health insurance, payroll, benefits, tax administration and compliance. They are a good fit for businesses needing HR support like payroll and tax processing, or recruitment and talent management. Larger PEOs offer health insurance through shared plans, while smaller ones may focus on individual business policies.
Why choose a PEO?
PEOs are ideal for businesses that want to simplify HR tasks and potentially save on health insurance costs.
Consider the tradeoffs:
- Access to health, dental and other benefits usually available to larger companies
- Manage payroll, withholdings and W-2 forms, making these tasks easier
- Manage group health plans, which can lower premiums and administrative costs
- Provide extra health benefits beyond insurance, like reimbursement accounts and wellness programs
- May be more expensive due to bundled services
- You may need to give up some control, as the PEO makes decisions about plan design for employees
Small Business Health Options Program (SHOP)
SMALL BUSINESSES WITH 1-50 EMPLOYEES
SHOP is a special marketplace for small businesses to find and buy health insurance for their employees. It offers a variety of plans and potential tax credits to help make coverage more affordable. SHOP is designed to simplify the process of providing health benefits to your team.
Why choose SHOP?
SHOP is ideal for small businesses looking to offer health insurance with potential savings through tax credits.
Consider the tradeoffs:
- Eligible small businesses can receive tax credits to lower the cost of coverage
- Offers a range of standardized plans, making it easier to compare options
- Access to support and guidance through the SHOP marketplace
- Plans may not be as tailored to specific needs compared to other options
- Only available to businesses that meet certain criteria
To be eligible for SHOP, your business must meet the following criteria:
- Have 50 or fewer full-time equivalent employees.
- Offer health insurance to all full-time employees.
- Enroll at least 70% of your eligible employees in the plan.
For more information, contact your State Department of Insurance or visit the SHOP Call Center.
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