How Much Is Small Business Health Insurance in New York

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Small Business Health Insurance in New York

As a small business owner, you have a lot of responsibilities. You have to manage employees, find customers and suppliers, and keep up with industry trends. One thing that shouldn’t be an added stress is your health insurance plan. Luckily, there are options available when it comes to shopping around for an affordable plan that meets your needs. Keep reading for more information on the cost and requirements for business health insurance in New York.

“Among the more than 465,000 businesses in New York in 2016, 99 percent were small businesses. In addition, the State was home to over 1.7 million non-employer businesses, which largely comprise self-employed individuals” – Small Business In New York State: An Economic Snapshot

Qualifying for a Small Business Health Insurance Plan


To be eligible for coverage in New York you will typically need to have 2 people or more in the company who work at least 20 hours per week. As long as the other employee has valid coverage elsewhere you can then enroll down to 1 person in your plan. In most cases, a non-owner employee can enroll on a plan with no issues. On the other hand, if the only enrolling member is an owner, there are other requirements that may not allow only the owner to enroll in the plan. Along with this, for most insurance carriers there are also participation requirements to consider.

Once you’ve made sure that your company fits these requirements, there are other factors that could help or hinder your ability to get affordable coverage. For example, if you’re an independent contractor who works for multiple clients at once and has never had one of those clients issue its own plan (like Amazon or Uber), then the chances are slim that any provider would accept your application because they’ll see too much risk in insuring someone who doesn’t have a regular source of income through their employer.

Instead, you would qualify for Individual Health Insurance in New York.

Requirements for small business health insurance plans in New York

When you purchase a small business health insurance plan in New York, there are some requirements that can help determine your rate:

  • Type of business you run – A retail store might have a different requirement than an auto repair shop. This may also impact the availability of certain plans, as not all policies are available to every industry.
  • Number of employees you have – The more people you employ, the higher the chances are that your company will be eligible for certain discounts or additional coverage options.
  • Location – Your location matters as well. If your company is located within New York City, then rate increases might reflect this because it’s considered “high risk” due to local crime rates and other factors (like increased traffic). On the flip side, rural areas tend to offer lower premiums than urban ones. 

Types of small group health insurance plans in New York


Small business health insurance plans in New York are typically offered in one of the following forms.

  • Health Maintenance Organization (HMO) plans: HMOs are the most common type of small business health insurance plan, and they’re also regulated at the state level. With this type of coverage, you’ll have to select a primary care doctor and stick with them throughout your contract period (usually one year). If you want to see a specialist or get care outside your network, you may have to pay more out-of-pocket. However, if all your employees choose HMO coverage from the same company at once, it can help reduce costs for everyone involved by increasing competition among providers for contracts with that insurer. This incentivizes insurers to offer lower premiums as well as better benefits so they can attract customers who value these things most highly when choosing their own coverage options.
  • Preferred Provider Organizations (PPOs): PPOs work similarly to HMOs but allow members greater flexibility through open access instead of requiring them all use the same primary care provider within each network where available; however they still require users to sign up before receiving services and pay more out-of-pocket when using providers outside those networks unless otherwise noted during the enrollment process. In addition, unlike traditional HMO’s which only offer care within its own network, there is no limit on how many visits patients can make per year under this type of coverage plan which makes it ideal if someone needs regular checkups but doesn’t want an exclusive relationship with any particular physician group.

How much does small group health insurance cost in New York?


According to the 2022 report, “the average annual premiums in 2022 are $7,911 for single coverage and $22,463 for family coverage. These amounts are similar to the premiums in 2021 ($7,739 for single coverage and $22,221 for family coverage). The average family premium has increased 20% since 2017 and 43% since 2012.” The average premium is slightly higher in the northeast, including New York, and will continue to rise yearly. To get an accurate quote for your business give us a call.

The amount you pay will depend on the number of employees in your business, as well as their age and gender. If you have a high-risk pool in your small business health insurance plan, it will cost more for each employee.

Tax Advantages


Businesses may be able to save money by providing their employees with health insurance. By paying part of the premiums, businesses can claim a deduction on their taxes. In addition, if employers set up a Section 125 plan, employees can pay for the coverage with pre-tax dollars and save on payroll taxes.

There are different health insurance options available to you, depending on your company’s size.


As you can see, there are many options available to small businesses looking for affordable health insurance in New York. That being said, it’s important to understand the different types of plans that exist so you can choose one that will suit your needs best. 

We can help you compare carriers, networks, and coverage options for all of New York City, Long Island, and Westchester County. Call us today to speak with an insurance specialist.

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