Who this is for: Owners of small Texas businesses deciding whether to offer group coverage, and growing companies whose current plan no longer fits.
Individual or group coverage for a small team?
For a very small team, the first question is whether a group plan makes sense at all. Teams of 3 to 5 employees often compare individual plans, including individual health insurance through the Marketplace, with a micro-group health plan. Dagan compares both, looking at cost, the coverage each option gives employees, and how much the business wants to contribute.
Options by company size
The rules that apply to a group plan depend on how many employees you have.
| Company size | What typically changes |
|---|---|
| 3 to 5 employees (micro-group) | Owners often weigh individual coverage against a micro-group plan |
| 6 to 49 employees (small business) | Generally falls under small-group market rules. Plans are priced without individual medical underwriting |
| 50 or more employees | ACA employer requirements may apply. The threshold counts full-time and full-time-equivalent employees, not headcount alone |
Micro-groups (3 to 5 employees)
Small teams often weigh individual market options against a micro-group health plan. Dagan can help set up a cost-conscious group plan that helps a young company attract early hires, or explain why individual coverage may fit better for now.
Small businesses (6 to 49 employees)
Businesses in this range generally fall under small-group market rules, so employees aren't individually medically underwritten. Dagan helps balance what the business contributes against the coverage it wants to offer.
50 or more employees
Employers with 50 or more full-time employees, counting full-time equivalents, are generally treated as applicable large employers under the Affordable Care Act. They may owe a penalty if they don't offer affordable coverage that meets minimum standards. The counting rules are specific, so confirm your status with IRS guidance or a tax professional. Dagan can help design coverage that meets the requirements.
A broker who adjusts as you grow
A benefits plan that works for five people may not work for twenty-five. Dagan works as a long-term broker. As your company grows into a new size band, he reviews your plan and your options again, so your benefits keep up with the business.
Plan availability, benefits and costs vary by carrier, county and plan year. This page is not tax or legal advice.