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Small business health insurance: a five-employee playbook
April 28, 2026·8 min read
Most five-person businesses assume health insurance is something they'll "figure out later" — usually after losing a candidate to a bigger employer. The truth: small group and ICHRA options have gotten dramatically better, and a thoughtful setup costs less than people expect.
Your three realistic options
- Traditional small group plan — one plan, employer covers a defined %.
- ICHRA — give each employee a tax-free monthly allowance to buy their own plan.
- Stipend or reimbursement — simplest, but no tax advantage.
For most teams under 10, ICHRA wins on flexibility: a 24-year-old single hire and a 48-year-old parent of three need very different plans, and ICHRA lets them each pick what fits.
Budget anchors
A reasonable starting point in 2026 is $400–$650 per employee per month. That's enough to cover a strong bronze or silver plan in most Florida markets — and it makes a real difference at offer time.