Many managers assume group health insurance is a big-company game. In reality, much of the market is open to small teams – but it matters where you knock.
The tax minimum: 2 persons
On the tax side, the favourable payer-taxed structure can work from as few as 2 insured persons – so there is no fundamental barrier even for the smallest companies. The practical question is which insurers accept a given headcount, and on what terms.
Insurer thresholds: a market that opens in bands
Entry minimums vary by insurer and change over time. The typical picture: a few insurers offer schemes even for very small groups, most open from the small-to-mid band, and the strongest tailoring and price competition come with larger headcounts. It is worth asking at the consultation which insurers’ offers are currently open at your size.
What can a 10-20 person company do?
- Choose from several insurers’ packaged small-group products – faster launch, less tailoring.
- Tier differentiation (executive/staff) works at small sizes too.
- Family member inclusion is available for small companies as well, and greatly raises perceived value.
When does the market really open up?
From mid-sized headcounts, competition sharpens: more offers, better bargaining, finer tailoring. This is also why an independent broker pays off: we know all nine insurers’ current acceptance rules and take your request where your headcount is a target segment, not a tolerated exception. More on pricing in our cost article.
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