Are you looking for a group health insurance plan for your retail store? While you may have a full schedule keeping track of retail sales, inventory, and storefront operations, the good news is that it is easy to find affordable and reliable retail health insurance plans for your small business.

Even small retail stores can qualify for small business health insurance, and you may be able to benefit from cost savings due to lower monthly premiums and potential tax benefits. Continue reading to learn more about health insurance for retail stores.

What is retail health insurance?

Retail health insurance is coverage that provides health insurance to retail workers, including business owners and employees. A retail health insurance policy comes from group health insurance, which covers individuals and families and can cover dependents. 

The type of coverage you have will depend on the insurance provider and plan. However, retail health insurance usually covers hospitalization expenses, emergency ambulances, nursing expenses, and doctor’s visits. 

Additionally, the cost of retail insurance plans is much lower than purchasing individual plans, making it a great option for employers and employees. 

How does retail health insurance work?

Retail health insurance policies require group health insurance, a type of health insurance that is offered to members of groups like employees and employers. Group retail health insurance policies are purchased by the business owner and provided to employees, but individuals cannot purchase different coverage through this plan. 

Group insurance varies depending on the insurance company, plan type, costs, and terms, so employees can choose to accept or decline coverage through the employer. Then, the premiums are split between the employer and employees, and employers may decide to extend health insurance to other family members and dependents.

Should a retail store have a small business health insurance plan?

Beyond having commercial insurance for your small retail business, you might also consider choosing a group medical insurance plan for yourself and your employees. Is a small business required to provide group health insurance? According to the Affordable Care Act (ACA):

• Businesses with fewer than 50 full-time or full-time equivalent employees are not required to offer group health insurance to their workers.
• Businesses with greater than 50 full-time employees are required to offer medical benefits to their workforce.

For small business owners, this means that you are not obligated to provide employer-sponsored health coverage to your employees. Still, there are many reasons why you might consider offering medical benefits to your retail workers, and having group health insurance may be especially important for the unique needs of a small retail business:

Less sick days

• More so than other small businesses, a retail store is often critically dependent on the physical presence of its employees as they interact with customers, manage inventory, and organize merchandise. Dealing with employee absences due to illness can be detrimental and disruptive to your retail business, especially during busy shifts, critical retail seasons, or holidays.
• Having a small business health insurance plan in place may be an effective way to help keep your employees healthy and productive over the long-term. By providing workers with access to quality health care resources, they could be more likely to recover and return to work faster.

Employee retention

• By its nature, retail tends to be a high-turnover industry. Offering health insurance to your staff may be an effective way to boost employee retention, since group medical plans are one of the most popular employee benefits. When retail workers see that their employer cares for their well-being by providing important benefits, they may be more likely to remain at their jobs.
• For retail small business owners, employee retention is important since it means reducing the likelihood of having to replace employees who leave, and avoiding having to go through the time-intensive recruiting, hiring, and training process again.

More affordable plans

• Managing costs is always an important concern for small retail business owners. Fortunately, small business health insurance plans may often be more affordable and have lower average per-person costs than individual health insurance plans.
• According to the eHealth 2018 Small Business Health Insurance Report, the average premium per-person for a small business health plan was $409, or 7 percent lower than average premium for an individual plan, which was $440. The eHealth report also found that small business health insurance plans show more premium stability over time than individually purchased coverage.

Overall, having a small business health insurance plan may provide access to medical coverage at a lower cost for both yourself and your retail employees. A group health plan may also contribute to other advantages for a small retail store, such as less absences and greater employee retention.

Pros of retail health insurance

Health insurance for retail stores comes with many benefits for employees and business owners, including:

• Lower premiums: This type of health insurance offers lower premiums than individual health insurance because the insurance provider is able to spread risk throughout the entire group. Also, because employers pay part of the premium, it’s much cheaper for employees to enroll in health insurance. 
• Tax advantages: Group healthcare coverage may provide you with benefits during tax season. Employers pay money toward employees’ premiums, and that money is usually tax deductible for the employer, reducing their net income and lessening their tax burden. Additionally, small businesses may be eligible for the small business healthcare tax credit. 
• Familiarity: Most people have had a group health insurance policy before, whether or not they’ve worked in retail, so most individuals are comfortable with them. Not only that, but many employees expect health insurance as a basic benefit when they’re employed. Of course, even though employers with fewer than 50 employees don’t legally have to provide this insurance, it’s still a great way to show your employees you appreciate them. In this case, the most significant benefit for employees is that they get quality health insurance and a reduced rate because group health insurance plans are typically less expensive and the employer pays part of the premium. 

Cons of retail health insurance

Retail group health insurance is not without its faults. Because employees have the option to opt-out of employer-sponsored health insurance plans, your business needs a 70% participation rate, or else no one will get coverage through group health insurance. 

Other cons of retail health insurance include: 

• Expenses: Even though retail health insurance plans come with lower premiums, they’re still an additional expense an employer will have to incur. Health insurance premiums increase every year, and employers may feel like group health insurance costs are too expensive to be sustainable and look for cheaper ways to provide health insurance options to employees. Additionally, since group insurance only provides employees with a few options, they may be able to find cheaper insurance on an individual plan.

Less flexible: Retail health insurance policies are less flexible than individual plans. Employees in a group plan only have a few options for coverage, and depending on your retail insurance policy, some employers might not be happy with those options. Employees have different health needs, so while your insurance offerings might give someone everything they need, it may not be the best solution for everyone within your company. Because you can’t customize group insurance plans, many individuals might prefer to find individual health plans instead of using your employer-sponsored plans.

Group health plan options for a retail store

A small retail business has many group health insurance options to choose from if it decides to offer medical coverage to its workforce. Here is a summary of common types of small business health insurance plans that your retail store can offer to your employees.

• Health Maintenance Organization (HMO) – In a HMO plan, retail employees choose a primary care physician (PCP) to coordinate their health care needs within their specific medical network. HMO plans often have lower premiums and out-of-pocket costs, yet less flexibility since members need a referral from their PCP before seeing a specialist.
• Preferred Provider Organization (PPO) – PPO plans do not require retail employees to choose a primary care physician, allowing them to see doctors outside of their medical network and consult specialists without a PCP referral. The trade-off for the greater network flexibility of a PPO plan is typically higher premiums and out-of-pocket costs.
• Point of Service (POS) – Combining the characteristics of PPO and HMO plans, POS plans involve selecting a primary care physician who manages specialist referrals. POS plans usually provide access to a wider variety of health care providers, and were chosen by 47 percent, or almost half, of small business owners in 2018, according to an eHealth report.
• Exclusive Provider Organization (EPO) – EPO plans do not require a primary care physician, allowing plan members to see doctors and specialists without referrals. However, while EPO plans may cost less than other health plans, they do not provide out of network coverage.

Choosing the right plan for your retail business will depend on the budget and health coverage preferences of yourself and your employees. Every health plan is different, so make sure to read the official documents for any plan you select in order to know its benefits and specifications.

Your retail store may be able to qualify for the small business health care tax credit, which can help your business pay for your portion of monthly employee premiums in a group health plan. Even if a small retail business is not eligible for the tax credit, employers are still able to deduct premium expenses from their federal business taxes.

How can a store qualify for the small business health care tax credit?

Retail business owners may be able to qualify for a two-year small business tax credit if they meet the following requirements: 

• Have fewer than 25 full-time employees
• Pays employees an average salary lower than $56,000 per year (this number changes each year)
• Pays at least 50 percent of employee healthcare premiums
• Bought a SHOP Marketplace Plan on the Marketplace or from partners

There is a minimum and a maximum credit, so depending on your employees’ average salaries and how much of their premiums you pay, you may qualify for significant savings. 

You can claim the tax credit even if you don’t owe taxes by using Form 8941 and attaching it to your business tax return. However, the credit can only be claimed for two years in a row. So, if you’re unsure if you qualify, consult a tax advisor who can run the numbers for you and try to get you the highest credit possible based on your unique circumstances.

How can a small retail business enroll in a group health plan?

To enroll in a small business health insurance plan as a retail store, you can visit public or private health exchanges. Choosing eHealth to enroll in a group health insurance plan can provide several distinctive benefits to retail small business owners:

• eHealth has the best selection of health plans available online, allowing you to find affordable and quality choices within your price range.
• We offer free health quotes for small business owners, with no obligation to enroll. We also do not charge any broker fees.
• Our website makes it easy to quickly compare plans from different health insurance companies, empowering you to find the right option for your business.

You can also speak with our licensed health insurance agents, who can answer your questions and provide you with personalized advice and unbiased recommendations based on your particular needs. If you choose to sign up for a small business health insurance plan, our agents will be there to help walk you through every step of our streamlined enrollment process, from start to finish.

eHealth also provides you with comprehensive support, serving as your advocate and point of communication with the insurance company, even after you sign up for a plan.

Visit eHealth.com today or speak with one of our licensed agents to learn more about your options for affordable small business health insurance.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.