What will health insurance actually cost me per employee?

For 2026-2027, small group coverage commonly runs about $470 to $740 per employee per month for employee-only coverage, before the employer's share is applied. Most small employers contribute 50% to 75% of that, which puts real employer cost somewhere around $250 to $500 per employee per month depending on plan level and the average age of the team.

Carriers generally require the employer to contribute at least 50% of the employee-only premium. There is normally no requirement to contribute anything toward dependent coverage, which is why most small employers cover the employee and let employees pay for spouses and children.

Yes. When employee premium contributions are taken pre-tax through a Section 125 cafeteria plan, that money is not subject to FICA, so the employer avoids the 7.65% payroll tax on it. On a group of ten employees this commonly returns several thousand dollars a year, and it is never included in the premium a carrier quotes.

Employer contributions toward employee health premiums are generally a deductible business expense. Businesses with fewer than 25 full-time equivalent employees and low average wages may also qualify for the Small Business Health Care Tax Credit. Check your specific situation with your tax advisor.

Level-funded plans often come in 10% to 20% below a fully insured plan for groups with a relatively healthy team, and can return unused claims dollars at the end of the year. They typically make sense from about ten enrolled employees upward.

Yes. A QSEHRA lets employers with fewer than 50 employees reimburse employees tax-free for individual coverage, capped at $6,450 for single and $13,100 for family in 2026. An ICHRA works similarly with no contribution cap and no company size limit.