Solving the Small Business Health Insurance Conundrum

Written by: Christina Merhar
Originally published on August 6, 2015. Last updated March 2, 2016.

It’s a common small business challenge - how do we offer health benefits without breaking the bank? As small businesses strategize how to afford health benefits, an increasingly popular approach is defined contribution.

The small business health insurance conundrum?Last week, I wrote an article featured on that helps small business owners understand how defined contribution healthcare is a solution to the small business health insurance conundrum.

Article Highlights - Solving the Small Business Health Insurance Conundrum

With a defined contribution health plan the business gives employees an allowance to use on individual health insurance, instead of contributing to a group health insurance policy.

As discussed in the article, defined contribution is taking off with small businesses because it offers an affordable health benefits model where the business, not the insurance company, controls the cost. Additionally, it is a formal, tax-free health benefits program that gives employees access to quality health insurance.

As a business evaluates a defined contribution and individual health insurance program, the article outlines four tips:

  1. Decide on a taxable vs. tax-free contribution

  2. Understand the rules and reforms

  3. Use an online self-service reimbursement software

  4. Don’t skip employee education

To read the full article on Synnovatia, click here.


Synnovatia is a website that helps entrepreneurs and small business owners reach their full potential. Synnovatia’s forte is creating innovative strategies that help small businesses outperform each and every year. The feature titled, "A Solution to the Small Business Health Insurance Conundrum" helps small business executives understand health insurance options.

Questions on small business health insurance? Leave a comment below. We'll help answer.

Originally published on August 6, 2015. Last updated March 2, 2016.


Additional Resources

View All Resources