Health insurance can feel overwhelming, especially for small business owners already juggling a dozen responsibilities. But in today’s job market, offering quality health benefits isn’t just a nice-to-have—it’s a must if you want to attract and retain great talent.
That said, finding the right health plan in Indiana comes with its own challenges. Between rising costs, limited provider transparency, and regional differences in access, it’s critical to have a clear strategy for choosing coverage that works for both your team and your budget.
In this step-by-step guide, we’ll walk you through everything you need to know about how to get small business health insurance in Indiana—from understanding your business’s needs to enrolling your employees and reviewing your plan annually.
1. Understand Your Business’s Needs
Your business is unique, and so are your health insurance needs. Before you start comparing different plans and options, it’s important to understand what exactly your business needs—and that starts with your employees.
Who makes up your workforce can have a major impact on the benefits you want to provide. For example, if a majority of your employees are older, they may need more comprehensive coverage. Meanwhile, a younger workforce may place more emphasis on mental health coverage options.
Fully understanding who will be using your plan and what exactly they want can help ensure the insurance you’re paying for actually gets used. It will also save you money on elements that may not be necessary. Conducting surveys and analyzing your workforce’s demographics can help you get an overview of your employees and guide you towards the most effective health insurance plan.
2. Know What is Legally Required
Under the Affordable Care Act (ACA), businesses with 50 or more full-time employees are required to provide health coverage. But even if your team is smaller, offering insurance can help you stand out—especially in Indiana’s tight labor market, where good benefits can make all the difference in hiring and retention.
Plus, if you have fewer than 25 employees and meet certain requirements, your business might be eligible for the Small Business Health Care Tax Credit, which can help offset the cost of providing coverage.
3. Solidify a Budget
Health insurance is one of the biggest investments you’ll make in your team—but in Indiana, it’s especially important to plan your budget wisely. Due to hospital consolidation, limited price transparency, and hidden costs passed on from underfunded programs like Medicare and Medicaid, Indiana businesses often pay more for healthcare than their neighbors in surrounding states.
To make the most of your budget:
- Understand Your Finances: Start with a clear picture of what your business can realistically contribute each month, while keeping coverage affordable for your employees. Don’t forget to consider upcoming projects or market shifts that could affect cash flow—both positively and negatively.
- Know the Costs: Insurance costs will change and shift depending on the specific plan you land on. On average, small businesses across the U.S. pay around $746/month for individual coverage and $2,131/month for family coverage, but Indiana rates tend to be higher.
- Look for Savings: There are plenty of ways to cut the cost of health insurance. Keep an eye out for programs like the Small Business Health Care Tax Credit and SHOP for potential savings.
4. Thoroughly Research Your Options
Different health insurance options have different coverage levels and costs. It’s important to understand the available options to find the one that best aligns with your business’s needs and budget.
Some popular plans include:
- Small Group Health Insurance: Group health plans in Indiana are best for businesses with fewer than 50 employees (and sometimes up to 100). These are your standard employer-sponsored plans. You contribute toward the monthly premium, and employees cover the rest.
- ICHRA (Individual Coverage Health Reimbursement Arrangement): Instead of choosing a group plan, reimburse employees tax-free for the individual insurance plans they buy themselves.
- QSEHRA (Qualified Small Employer HRA): Great for very small teams, QSEHRA lets you reimburse employees for healthcare expenses (including premiums) within IRS-set annual limits.
- Self-Funded Health Insurance: With this option, you skip the traditional insurer and pay for healthcare claims directly as they come in—often with the help of a third-party administrator and stop-loss insurance. Many small Indiana businesses are switching to this model because of its price transparency.
- Health Stipends: Keep things simple by offering a flat, taxable monthly stipend that employees can use for medical expenses.
- Association Health Plans (AHPs): Partner with other businesses—often through an industry or trade group—to access larger group insurance plans at potentially lower costs.
5. Apply for Government Programs
As we’ve mentioned, there are a few government programs that both offer affordable health insurance options and provide tax or cost breaks that can make other plans cheaper.
- The Small Business Health Options Program (SHOP): A marketplace offering group health plans tailored to small businesses.
- The Small Business Health Care Tax Credit: Available for businesses with fewer than 25 employees that meet certain criteria.
- Indiana HRA Tax Credit: Small businesses offering health reimbursement arrangements (HRAs) can receive tax credits in Indiana.
- Indiana ICHRA Tax Credit: Small businesses offering ICHRA can receive up to $400 per employee for their first year enrolled.
These programs and tax credits can help make health insurance more affordable for your small business.
6. Compare Different Insurance Providers
When you know what health insurance plan you want to go with, the next step is choosing a provider. And in the Indiana small business health insurance market, that decision matters more than ever. With rising costs and limited pricing transparency across the state, it’s important to partner with a provider that aligns with both your business goals and your employees’ needs.
Here are a few key things to compare as you evaluate providers:
- Cost: Look at premiums, deductibles, and co-pays. Indiana employers often face higher-than-average healthcare expenses, so it’s essential to find a plan that delivers strong value without overextending your budget.
- Network Coverage: Consider where your employees live and work. Some providers have stronger networks in urban areas like Indianapolis, while others may offer broader coverage across rural parts of the state.
- Additional Benefits: Extras like dental, vision, mental health support, and wellness programs can make your benefits package more appealing, especially in a competitive job market.
- Support & Service: Look for providers that offer reliable customer support and an easy claims process. That makes a big difference when your team needs care quickly.
7. Partner with a Benefits Consultant
With how complex the health insurance field can be, partnering with an experienced benefits consultant like Paradigm is a game-changer. These consultants understand the ins and outs of different insurance options and can help you navigate the following steps:
- Finding plans that fit your business’s specific needs
- Staying in budget and taking advantage of cost-saving programs
- Complying with legal regulations
- Maintaining an efficient enrollment process
An experienced benefits advisor can help you understand your options, uncover hidden cost drivers, and design a plan that’s sustainable for your business and valuable to your employees.
8. Apply for Small Business Health Insurance
Once you’ve chosen the right health insurance plan and provider, the next step is getting everything set up and your team enrolled. To keep the process smooth and stress-free, here’s what to do:
- Register Your Business: Start by officially enrolling your company with your chosen provider. You’ll need to provide details like your business’s tax ID number, total number of employees, and the plan you've selected.
- Gather Employee Info: Collect the necessary information from your team, including Social Security numbers, dependent details, and any other documentation your provider requires.
- Communicate Open Enrollment: Clearly let your employees know when open enrollment begins and ends. Make sure they have access to all plan options, forms, and resources they need to make informed choices.
With the right support and preparation, enrolling in health insurance doesn’t have to be overwhelming. It’s just one more step toward building a healthier, stronger team.
9. Continually Inform Employees
Once you officially have a health insurance plan, it’s crucial to keep your employees informed on how to use it. Be sure to provide information sessions, offer individual meetings, or create digital resources to explain:
- What is covered under your policy
- How to find in-network providers
- How to utilize health savings accounts (HSAs) or flexible spending accounts (FSAs)
- Where and how to file claims and access customer support
Clear communication ensures employees maximize their benefits and appreciate the coverage provided.
10. Review & Adjust
Indiana’s healthcare landscape—and your business—can change quickly. That’s why it’s smart to review your health insurance plan each year. As your team grows, your budget shifts, or your employees’ needs evolve, your benefits should evolve too. Consider employee feedback, plan performance, and cost adjustments.
Because healthcare costs in Indiana tend to run higher than in surrounding states, making strategic adjustments is especially important here. Partnering with a local health benefits consultant can help you reassess your options, identify better value, and make informed updates that keep your benefits package competitive—and your team covered.
Knowing how to get small business insurance in Indiana may seem complicated, but with the right guidance and a clear plan, it’s entirely possible. From navigating state-specific challenges to taking advantage of tax credits and government programs, there are plenty of ways to build a benefits package that supports your team and strengthens your business.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.