Small Business Health Insurance PA (2025): What Every Employer Needs to Know

Written by: MD Emran Khan| Updated: July 13, 2025

Let’s face it — offering health insurance isn’t just a nice perk anymore. If you run a small business in Pennsylvania, it could be the difference between attracting top talent or losing them to a bigger company.

From Lancaster to Philly, PA small business owners are realizing that health coverage isn’t a luxury — it’s a growth strategy. The good news? You don’t need a massive HR team to offer a great plan.

This guide breaks down the best health insurance options for small businesses in Pennsylvania, legal requirements, costs, and pro tips for making it work — even if you only have a few employees.

small business health insurance pa

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 Do PA Small Businesses Have to Offer Health Insurance?

Short answer: It depends on your size.

• If you have fewer than 50 full-time equivalent employees, you’re not legally required to offer health insurance.
• But offering it can give you tax benefits, improve employee retention, and make you more competitive in hiring.

Pro Tip: Even a solo business owner can get affordable group-style rates through certain state programs and associations.

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 Best Health Insurance Options for Small Businesses in PA (2025)

Provider	Best For	Key Features
Highmark Blue Shield	Local PA network, broad coverage	Strong provider network, flexible small business plans
UPMC Health Plan	Pittsburgh-based businesses	Affordable options, wellness programs, virtual care
Independence Blue Cross	Businesses in Philadelphia & SE PA	Great for urban teams, strong mental health coverage
UnitedHealthcare	Nationwide flexibility	Lots of plan tiers, good for growing companies
Aetna CVS Health	Budget-conscious businesses	Low premiums, telehealth benefits

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 What Health Insurance Plans Are Available?

1. Small Group Health Insurance Plans

Designed for 2–50 employees, often available through brokers or directly from insurers.

2. SHOP Marketplace (Pennie in PA)

Pennsylvania’s state-run exchange: www.pennie.com.
Some businesses qualify for tax credits if they offer plans through Pennie and meet specific salary and size thresholds.

3. QSEHRA (Qualified Small Employer HRA)

Reimburse employees tax-free for premiums or medical expenses — great for businesses that can’t afford group coverage.

4. ICHRA (Individual Coverage HRA)

Flexible, scalable alternative to group plans. Employees choose their own coverage; you set the reimbursement limits.

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 How Much Does Small Business Health Insurance Cost in PA?

Costs vary by plan, age of employees, coverage level, and location — but here’s a ballpark for 2025:

• $400–$700/month per employee for group plans
• Employers typically cover 50–80% of premiums
• Tax benefits may offset costs (federal and state level)

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 Real PA Business Owner Insight

“Offering health insurance through Pennie helped me keep my core team together during a tough winter season. I get tax credits, and my employees feel more secure. It’s a win-win.”
— Tariq A., Owner of Greenside Landscaping, Harrisburg

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 Key Benefits of Offering Health Insurance

• ✅ Attract better talent
• ✅ Increase employee loyalty and morale
• ✅ Reduce absenteeism
• ✅ Qualify for small business tax credits
• ✅ Boost your business’s reputation

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 FAQ

Q: Can I offer health insurance to just one or two employees in PA?
➡ Yes, through small group plans or reimbursement models like QSEHRA.

Q: Can I get a tax credit for offering insurance?
➡ If you buy through Pennie (PA’s SHOP), have under 25 employees, and meet wage requirements — you might qualify.

Q: Do I have to provide the same plan to everyone?
➡ Usually yes for group plans, but reimbursement models like ICHRA give more flexibility.

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 Sources

• Pennsylvania Insurance Department
• Pennie – PA Health Insurance Marketplace
• IRS – Small Business Health Care Tax Credit

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