Group Health Insurance
that helps you attract
and keep great people.
Medical, dental, vision, life, and disability benefit options for California businesses. HMO, PPO, HDHP, and multi-plan strategies. Independent broker support from a California employee benefits broker, also called a group benefits broker or an employer health insurance broker, and a complimentary benefits review.
Why Offer Group Health Insurance
Health benefits aren't just a perk — they're a competitive necessity
In California's tight labor market, health benefits can help employees compare job offers and support retention. The right plan depends on your workforce, budget, and provider needs.
Attract Better Candidates
Health insurance is consistently one of the most valued employee benefits when candidates compare job offers. Without it, employers may be competing at a disadvantage.
Retain Your Best People
Employer-sponsored health coverage can support retention and reduce the pressure of replacing key employees. Turnover can be expensive, especially for skilled or client-facing roles.
Significant Tax Advantages
Employer health contributions may receive favorable tax treatment. The result depends on your business structure, eligible participants, and plan design; confirm it with your tax adviser.
Plan Types
HMO, PPO, HDHP — which is right for your team?
California employers can offer one plan type or let employees choose from multiple options. Here's what each plan type means in practice.
Health Maintenance Organization
Generally coordinates care within a provider network. Primary-care and referral requirements depend on the plan. Compare premiums and out-of-pocket costs rather than assuming an HMO is always cheapest.
Preferred Provider Organization
PPO plans generally offer direct specialist access and more provider flexibility. Verify referral rules, out-of-network benefits, and employee costs in the actual policy.
High Deductible Health Plan
Compare premium savings with higher deductibles and expected care costs. HSA contributions require an HSA-qualified plan and individual eligibility; not every high-deductible plan qualifies.
Exclusive Provider Organization
Similar to PPO without out-of-network coverage except emergencies. Lower premiums than PPO with more flexibility than HMO. Growing option in California.
Employee Choice / Multi-Plan
Offer employees multiple plan options — they choose what fits their life. Through Covered California for Small Business (CCSB), employees can select from different carriers.
How much should you
contribute?
Carrier rules and market expectations create practical contribution floors — competitive employers often do more. Here's how contribution strategy works.
Common Floor — 50% of Employee Premium
Small-group carrier and participation rules commonly require employers to contribute at least 50% of the employee-only monthly premium. Treat this as a practical floor — not necessarily the competitive standard.
Competitive Standard — 75–100% Employee, 25–50% Dependent
An employer may choose a higher employee contribution or add dependent support. Model the actual budget and employee cost; the percentages here illustrate strategies, not a survey of employer practice.
Tax Savings on Contributions
Every dollar you contribute to employee health premiums is tax-deductible and not subject to payroll taxes (FICA). For a $500/month contribution, that's roughly $600-$900 in annual tax savings per employee.
California Carrier Guide
Major group health carriers — what you need to know
The right carrier depends on your location, employee demographics, and priorities. Here's a quick guide to the major options in California.
What California employers
need to know about compliance
The ACA and California state law impose different obligations depending on your size. Here's the landscape.
Employer Mandate
Applicable large employers are generally determined using the prior year's average workforce of at least 50 full-time employees, including equivalents. Employer shared responsibility payments depend on specific offer-of-coverage and statutory conditions. Review your obligations with qualified advisers.
Small Employer Choice
Employers with fewer than 50 FTEs are not required by federal law to offer health insurance. However, California's individual mandate means your employees likely need coverage — making group insurance an attractive benefit.
Small Business Health Care Tax Credit
Small employers with fewer than 25 FTEs, average wages within IRS eligibility thresholds, and who contribute at least 50% of employee premiums may qualify for a federal tax credit of up to 50% of eligible premium costs when SHOP coverage and all applicable IRS requirements are met.
CA Minimum Essential Coverage
California requires most residents to have minimum essential health coverage or pay a state tax penalty. This means your employees who lack coverage face financial consequences — strengthening the case for employer-sponsored benefits.
Covered California for Small Business
CCSB serves eligible employers with 100 or fewer full-time-equivalent employees and at least one qualifying W-2 employee. Contribution, participation, and California workforce requirements also apply.
Pre-Tax Premium Savings
A Section 125 cafeteria or premium-only plan allows employees to pay their premium share with pre-tax dollars. Tax savings depend on employee eligibility, wages, and applicable tax rates. Have payroll and tax advisers confirm the arrangement.
Tax Advantages
Review the plan and its tax treatment
Tax treatment depends on eligibility, business structure, and plan design. Review it with your tax and payroll advisers alongside premiums and employee costs.
Illustrations only, not average outcomes: $6,000 × 7.65% = $459 and $4,500 × 7.65% ≈ $344, assuming eligible wages below applicable payroll-tax limits. The $600 income-tax example assumes $3,000 at 20%. Actual treatment and savings vary; confirm with a tax adviser.
How the Tax Savings Stack Up
Every dollar you contribute
works harder than you think
Employer Deduction Review
Employer-paid health premiums may be deductible business expenses, subject to the arrangement and applicable tax rules. Owner and shareholder treatment can differ.
Payroll-Tax Treatment Review
Eligible employer health contributions may be excluded from wages for federal payroll-tax purposes. Participant and arrangement rules matter; do not assume a fixed saving for every arrangement.
Section 125 Pre-Tax Employee Premiums
With a premium-only plan (POP), employees pay their share pre-tax — reducing their taxable income and saving both employee and employer on payroll taxes.
Federal HSA Tax Treatment
For HDHP plans paired with HSAs: contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free. California does not conform to federal HSA tax treatment; ask your tax adviser about state reporting.
Before You Choose or Renew
A benefits review for your actual workforce
- Start with the renewal date, current plans, employer budget, and approximate employee count—not a promised price.
- Review employee work and home locations, dependent needs, and remote-team access before comparing networks.
- Verify preferred doctors, hospitals, and prescriptions against the exact proposed plan; a carrier name alone is not enough.
- Compare employer contribution, employee payroll cost, deductibles, out-of-pocket limits, and participation requirements.
- Confirm enrollment deadlines and effective dates before cancelling or replacing existing coverage.
For an initial conversation, share your renewal date, employee count, and general goals. Do not email Social Security numbers, medical information, or a detailed employee census. Ask our team how to provide required records securely.
CCSB eligibility and federal employer shared responsibility use different thresholds. General educational information—not a determination of eligibility or tax advice. Source check: October 3, 2026.
Primary sources: CCSB eligibility · IRS employer-size rules · IRS small-business tax credit · California HSA tax treatment
Discuss your benefits review with Bollinsure using the existing quote or phone options below.
Serving All of California
Group health insurance for every California employer
We serve employers in every California county — from 1-employee startups to established businesses with hundreds of team members.
Frequently Asked Questions
Group health insurance explained clearly
Federal employer shared responsibility rules generally apply to applicable large employers averaging at least 50 full-time employees, including equivalents, in the prior year. A payment may apply when the statutory conditions are met; it is not automatic. Employers below that threshold may choose to offer coverage.
Contribution and participation requirements depend on the carrier and program. A 50% employee-only contribution is a common small-group requirement, not a universal rule for every employer arrangement. Confirm current requirements before setting the employer budget.
CCSB eligibility includes 100 or fewer full-time-equivalent employees, at least one W-2 employee other than the owner or spouse, a majority of eligible employees living or working in California, and contribution and participation requirements. Other programs have their own eligibility rules.
HMO plans generally coordinate care within a network; referral rules vary. PPO plans generally offer more provider flexibility, with out-of-network costs subject to the policy. HDHPs have higher deductibles; HSA contributions require an HSA-qualified plan and individual eligibility. Compare the actual network, benefits, and total costs.
CCSB is California's small-business health insurance marketplace. Eligible employers can offer available carrier and plan choices while setting a contribution strategy. Program eligibility and Small Business Health Care Tax Credit eligibility are separate; qualifying for CCSB does not guarantee a tax credit.
A properly established Section 125 premium-only plan may allow eligible employees to pay their premium share with pre-tax dollars. Eligibility, documentation, and nondiscrimination requirements matter. Coordinate implementation with your payroll provider and tax adviser.
Yes. Dental and vision can be offered as standalone group benefits, bundled with medical, or added as voluntary (employee-paid) benefits. Major California dental carriers include Delta Dental, Guardian, MetLife, Cigna Dental, and Anthem Dental. Vision carriers include VSP and EyeMed. We help you structure the right combination.
New employees can enroll during their initial enrollment period (typically within 30 days of hire). Existing employees enroll during annual open enrollment (typically 30-60 days before the plan year start). Special enrollment may be triggered by qualifying life events such as marriage, birth of a child, or loss of other coverage.
Ready to Offer Great Benefits?
Complimentary group health review.
For California employers.
We review plan design, contribution strategy, employee needs, and appropriate available carrier options—practical guidance with no obligation to change.
Commercial coverage review
Renewing within 120 days, or need coverage now?
Start with your employee benefits program. A licensed California commercial broker can review the current program, identify the underwriting information carriers will need, and coordinate the next step.