How many employees do I need to start a Small Group Plan?

Thinking about moving away from individual plans? Here is the "Rule of 2" you need to know for Small Group eligibility:

• The 2-Employee Minimum: To qualify for a group plan, you must have at least two full-time (or full-time equivalent) W-2 employees.

• The "No Family Plan" Rule: To count as a group of two, the employees must not be related.
  
  A business consisting only of a husband and wife is considered a "family plan" and not eligible for group rates. 

• Self-Employed vs. Small Group: If you own a business and have no W-2 employees, the IRS considers you "Self-Employed" and not an employer. 
  
  Insurance carriers will want to see a legal business entity, with a Federal Tax ID and payroll records. 

• The Cost Caveat: While group rates can be competitive, carriers often offer deeper discounts as your employee count grows.
  
  For a "Group of 2," the Marketplace is often actually more affordable because of income-based subsidies that aren't available to group plans.

Our Advice: If you have 2–5 employees, let’s run a side-by-side comparison.