Small business health insurance in Kansas

Group health insurance plans in Kansas

Traditional group health insurance plans have been a staple for businesses since the end of World War II. In a group plan, both the company and its employees typically contribute to the premium costs, with the employer taking on a larger share of the expenses.

Additionally, employers can extend group coverage to employees' spouses and children, enhancing the benefits offered to their workforce.

In Kansas, group plans can come in one of the following forms:

• Preferred provider organization plans (PPOs): A PPO is the most common type of health plan. PPOs offer members a network of healthcare providers, with the flexibility to receive care from outside that network for an additional fee.
• Health maintenance organization plans (HMOs): An HMO provides a comprehensive array of healthcare services through established provider networks. Members are required to select a primary care physician (PCP). Their PCP manages their healthcare requirements and refers them to specialists when needed.
• Exclusive provider organization plans (EPOs): An EPO combines features of both HMO and PPO plans. Members can access services from a specific network of providers and visit specialists directly without needing referrals. However, EPOs don't cover any care received from out-of-network providers.
• Point of service plans (POSs): A POS plan provides lower costs for in-network doctor visits while also covering out-of-network care. Similar to an HMO, members need referrals from their PCPs to consult specialists.

Larger companies typically get more favorable rates on group health insurance due to the broader distribution of risk across a larger employee base. Additionally, they benefit from sharing premium expenses.

According to KFF, employers typically cover about 83% of the premiums for individual plans and around 72% for family plans^2.

To qualify for a group health plan, you need about 70% of your employees to participate.

If a traditional group health plan is beyond your budget, you might want to consider a high deductible health plan (HDHP). An HDHP can offer savings by reducing monthly premium costs for both employers and employees.

The downside of HDHPs is that they come with higher deductibles, which means your employees will need to pay more before the health insurance company starts to help with their bills. This could make things pricier for your team.

In this scenario, you can set up a group coverage HRA (GCHRA), sometimes referred to as an integrated HRA, to complement your HDHP. A GCHRA allows you to provide tax-free reimbursements to your employees for their out-of-pocket expenses, such as deductibles.

Employers in Kansas with fewer than 50 FTEs can access small business health insurance plans through a broker or a health insurance carrier. If you have fewer than 25 employees who earn less than $50,000 annually, you may qualify for the Small Business Health Care Tax Credit.

The following companies offer small group health plans in Kansas in 2025, according to HealthCare.gov’s rate review website³:

How to take advantage of individual health insurance with an HRA

If a group plan seems too expensive, or you lack sufficient staff to enroll, there’s a better alternative for your small business.

You can skip a traditional group health plan and go with a stand-alone HRA. HRAs allow you to provide affordable health coverage to your employees by reimbursing them for their individual health plan premiums.

With an HRA, you can reimburse your employees for a wide range of eligible expenses:

• Monthly premiums for health, vision, and dental plans
• Preventive services
• Emergency services
• Dental costs
• Vision costs
• Prescription drugs
• Over-the-counter medication
• Mental health services

Two of the most popular HRAs are:

• The individual coverage HRA (ICHRA): This ICHRA offers the most flexibility for employers. With no annual limits on employer contributions, you can offer your workers as much as you'd like as an allowance. You can also differ allowances and eligibility with 11 employee classes, such as full-time and part-time workers. The ICHRA is also a great solution for ALEs who need to meet the employer mandate. Eligible employees need their own individual health insurance plans to participate in the ICHRA.
• The qualified small employer HRA (QSEHRA): The QSERHA is an excellent option for organizations that want to provide benefits for the first time or lower their premium costs. Unlike the ICHRA, the QSEHRA is only for small businesses with fewer than 50 FTEs. It also comes with annual contribution limits. It doesn't have employee classes, but you can vary allowances based on an employee's age and family size. Eligible employees need health plans that provide MEC to participate.

An HRA is especially beneficial in Kansas. In almost every county, individual coverage is cheaper than small group insurance.

The chart below shows how much cheaper individual plans are in the five largest counties by population in Kansas, according to Ideon⁴:

With cheaper individual premiums, employers can save money by reimbursing employees for all or a portion of these premiums instead of a group plan.

Ancillary and supplemental plans

While health insurance is an important employee benefit, it's just the tip of the iceberg. You can do more to support their overall well-being by offering additional perks, called ancillary benefits, to provide comprehensive coverage.

Some ancillary and supplemental health benefits you can offer include:

• Dental coverage: Medical plans don't usually offer adult dental care. If you offer dental insurance as an extra perk, you can help your employees out with the costs of exams, fillings, and other dental expenses. You can also use an HRA to reimburse your employees for their dental bills and dental plan premiums.
• Vision insurance: Like dental care, traditional health plans don't often cover vision care. This means your employees are stuck paying the cost of eye exams and prescription lenses out-of-pocket. Adding vision coverage can help your employees out with these expenses. Plus, you can also use an HRA to reimburse them for those vision expenses and any premiums for vision plans.
• Health savings account (HSA): An HSA is an employee-owned account that allows both you and your employees to contribute pre-tax funds. Your employees can access their HSAs whenever they need to pay for upcoming medical expenses.
• Flexible spending account (FSA): Just like an HSA, a healthcare FSA helps your employees cover out-of-pocket costs when they need medical care. It includes most of what an HRA does but doesn't include health insurance premiums for reimbursement.
• Critical illness insurance: Critical illness insurance serves as a vital safety net for severe health conditions, including cancer, stroke, or kidney failure, which may not be adequately covered by standard health insurance plans. It provides your employees with a lump-sum payment, allowing them to cover medical expenses or compensate for lost wages during their time away from work.