Comparison Guide 2025
Group Health Insurance Options
for Indiana Small Business
Offering health insurance is one of the best ways Indiana small business owners can attract and keep great employees. But choosing the right plan can be confusing—especially when costs keep changing. This 2025 / 2026 guide compares the most popular options and shows how BlackIron Financial helps you pick the best fit for your team and budget.
| Plan Type | Employer Control | Cost Predictability | Employee Choice | Best For |
|---|---|---|---|---|
| Traditional Group | High | Medium | Medium | 5+ employees, stable team |
| Level-Funded | Medium | High | Medium | 5–50 employees, healthy group |
| ICHRA | High | High | High | Any size, flexible workforce |
| Association Plan | Medium | Medium | Low | Trade-based businesses |
| SHOP Marketplace | Medium | Medium | Medium | <25 employees, tax-credit eligible |
| Health Sharing | Low | Low | Low | Solo or startup owners |
1. Traditional Group Health Insurance (Fully Insured)
What It Is
Traditional group plans are what most people think of as “employee health insurance.” Employers select a plan (often from carriers like Anthem, UnitedHealthcare, or Nationwide), contribute to premiums, and employees pay the rest via payroll deductions. BlackIron helps Indiana businesses compare carriers side-by-side to match benefits goals and budget.
Pros
- Familiar and easy for employees to understand
- Broad doctor and hospital networks
- Signals commitment to employee health
- Less underwriting required
Cons
- Typically the most expensive option
- Annual rate increases are common
- Employer participation requirements
2. Level-Funded Health Plans
What It Is
Level-funded plans are a smart middle ground between traditional insurance and self-funding. You pay a fixed monthly amount covering claims, admin fees, and stop-loss protection. If claims run low, you may receive a refund at year-end. These plans have become the most popular option for small businesses in recent years.
Pros
- Potential 10–20% savings vs. traditional
- Fixed monthly payments for easier budgeting
- Refund potential for low-claim years
Cons
- Less ideal for very small or high-claim groups
- Some health underwriting required
3. ICHRA (Individual Coverage Health Reimbursement Arrangement)
What It Is
ICHRA lets you set a tax-advantaged monthly allowance for employees to buy their own ACA-compliant coverage on the individual market. You control contribution amounts; employees choose plans that fit their needs. BlackIron supports design, compliance, and employee education.
Pros
- Full control over your benefits budget
- Works for any business size—even 1 employee
- Employees select any plan on the market
Cons
- Employees must shop (with guidance)
- Requires clear communication and support
4. Association Health Plans (AHPs)
What It Is
AHPs allow small businesses in the same trade or industry to band together for group-rate coverage.
Pros
- Group buying power can lower premiums
- Access to broader networks
- Often includes dental/vision add-ons
Cons
- Must meet membership requirements
- Less flexibility in plan design
5. SHOP Marketplace Plans
What It Is
The Small Business Health Options Program (SHOP) on HealthCare.gov lets small employers buy group coverage and may qualify some for the Small Business Health Care Tax Credit.
Pros
- Possible federal tax credits
- Online comparison and enrollment
- Works for very small teams
Cons
- Fewer choices in certain Indiana regions
- Premiums can still be high for tiny groups
Which Option Is Right for You?
Traditional group plans are familiar and easy to manage for both employers and employees.
Level-funded plans or ICHRAs often reduce premiums without sacrificing coverage quality.
ICHRA provides flexibility and nationwide access so employees can choose local plans that fit.
Association health plans may unlock group discounts and broader networks via your industry association.
SHOP marketplace plans can be a straightforward first step and may qualify your business for tax credits.
BlackIron helps Indiana small businesses compare all these options side by side, so you can confidently choose the one that balances cost, compliance, and employee satisfaction.
Next Steps for Indiana Employers
- Set a monthly budget per employee.
- Get quotes from multiple carriers. BlackIron does this for you.
- Compare plan types and features.
- Work with BlackIron to handle compliance and enrollment.
- Educate your employees so they understand and use their benefits.
In 2025 / 2026, Indiana small businesses have more flexibility than ever when it comes to offering health benefits. Whether it’s a traditional group plan, a level-funded option, or an ICHRA, the key is understanding what fits your team’s size and health needs.
BlackIron specializes in helping small businesses design benefit packages that keep employees covered and costs under control—without the confusion or annual renewal headaches.
