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Health Benefits

Health benefits for startups: your main options

Group coverage, QSEHRAs, and ICHRAs in plain language.

Denta team · · 2 min read

Startups can offer group health insurance or, when eligible, use a health reimbursement arrangement to help employees buy individual coverage. The right path depends on team size, location, budget, and how much plan choice you want employees to have.

Three common routes

RouteBasic ideaKey check
Group coverageEmployer offers a medical planLocal plans, contributions, and enrollment
QSEHRAEligible small employer reimburses qualified expensesEmployer size and no group plan
ICHRAEmployer reimburses qualified expenses with individual coverageEmployee classes and individual coverage rules

HealthCare.gov describes QSEHRA eligibility and ICHRA basics. Eligible small employers may also consider SHOP coverage.

Make the first decision simple

Estimate your annual employer budget and map where employees live. Ask a licensed broker or benefits specialist to compare actual group quotes with a compliant reimbursement design. A QSEHRA or ICHRA affects how employees buy coverage and may affect Marketplace premium tax credits, so model employee outcomes as well as employer cost. HealthCare.gov explains the QSEHRA and tax-credit interaction.

Dental can be a separate benefit decision. Read whether you can offer dental without medical insurance after you choose your medical path.