Small Business Employee Health Coverage

Group Health Coverage

Health insurance provided to employees by an employer or by an association to its members is  group health coverage. Health insurance you buy on your own—not through an employer or association—is called individual coverage.

Buying insurance for your small business (group coverage) has different rules than buying just for yourself or your family (individual coverage). The good news is that coverage for small businesses provides advantages that may not be offered to individuals until 2014, when the Patient Protection and Affordable Care Act (federal healthcare reform) is fully implemented. Below, we outline the basics behind group coverage.




To learn more about what the Affordable Care Act requires of small business and to find out how penalties are calculated see “Shared Responsibility Requirement.”