You’ve got a business to run. Employees to pay. Goals to hit. But, what about your group health insurance coverage?
Health insurance is one of the most important decisions you can make for your company and your team.
But with so many options and rising costs, knowing which plan to choose isn’t always simple.
Should you go with a fully-insured plan or explore level-funded options? Is an ICHRA right for your team? What’s actually affordable, and what’s not?
In this brief guide, we break down the best group health insurance options for small businesses in Houston in 2025. You’ll learn how each plan type works, what to consider based on your team size and goals, and how to make an informed decision with confidence.
Why Choose the Right Group Health Insurance in Houston Matters
Choosing the best group health insurance in Houston isn’t just about bragging rights. It affects retention, morale, and compliance. According to the National Federation of Independent Business, over 60% of small businesses say healthcare costs are a top concern. Employees want predictability and savings.
What is the Average Cost of Health Insurance for Small Employers in Houston?
- In 2025, most Texas small businesses will pay $500-$700 per employee per month.
- Cost vary by team size, age, coverage type, and location
- Level-funded plans, detailed below, are reducing costs for healthy groups
How to Save on Group Health Insurance Costs
Best Group Health Insurance Options for Houston Small Businesses
Here are the best options available in 2025 based on value, flexibility, and performance in the Houston market.
Level-Funded Plans
Level-funded plans are excellent for combining predictability with savings. You also get to set monthly costs and unused claims are refunded. This is the ideal plan for small businesses with 2-50 employees. For businesses in Houston, this is a popular choice because it offers strong regional provider networks.
Pros:
- Cost-effective
- Tax deductible
- Lower premiums than fully-insured
Cons:
- Not ideal for high-risk groups
- More admin-heavy without a broker.
Don’t make these Top 3 Mistakes Businesses Make When Choosing Group Health Insurance
Fully-Insured Small Group Plans
Fully insured small group plans come with a traditional model and fixed monthly premiums, however, those premiums are often more expensive than your standard plan. They are also more predictable when it comes to costs. Carriers who offer fully-funded plans include Blue Cross Blue Shield of Texas, Aetna, and UnitedHealthcare.
If your company has higher-risk employees and over 50 workers, a fully-insured plan might be best.
Pro Tip: Fully-insured plans can be layer with FSAs to increase value.
ICHRAs & QSEHRAs
If you want a reimbursement-based health plan model, an ICHRA or a QSEHRA could be the right fit. These plans are great for startups, part-time teams, or hybrid workforces. They offer to reimburse employees for their chosen individual plans, and they are tax-free for both you and your employee.
Choose an ICHRA if: You want flexible, scalable, and ACA-compliant options.
Choose a QESHRA if: You want a simpler option for teams under 50.
ICHRAs = Flexible, scalable, and ACA-compliant
QSEHRAs = Simpler option for teams under 50
Pro Tip: Work with a broker to help design a plan using these models.
PPO vs. HMO: What Houston Employers Need to Know
PPOs offer a wider network and are more expensive than other types of plans. HMOs, on the other hand, are less expensive but have a more restrictive network. Houston enjoys strong regional PPO/EPO options that combine flexibility and price. We highly recommend using a broker to evaluate which local provider networks are available.
Factors That Should Impact Which Plan You Choose
Choosing the best group health insurance in Houston depends on the number of employees you have, age and health risk of your team, preferred network (if any), your budget range and deductible preference, desire for flexibility or simplicity.
Should You Offer Add-On Benefits Like FSAs or Dental
These small additions increase satisfaction without a huge cost.
- FSAs: Let employees set aside pre-tax income.
- Dental/Vision: Often less than $50 per month per employee
- HSAs: Only available with a qualified high-deductible plans
Why Small Businesses Should Offer FSAs
How A Houston-Based Insurance Broker Can Help
Working with a local broker like Primary Care Insurance Solutions offers you and your employees a host of benefits. For example, we get you access to regional-only plans not found online. We are also highly skilled at making sure your small business is in full compliance with health insurance laws and navigating POCRI fees. Our support for employees onboarding and claims issues is also top tier.
A small group health insurance broker can also aid you in comparing apples to apples, and ensure you don’t overpay for your plan options and coverage that your team simply doesn’t use.
With the right help in your corner, you can keep your claims costs low and your employee morale high.
FAQs About Group Health Insurance in Houston (2025)
What’s the cheapest group health plan for small businesses in Houston?
Level-funded plans are usually the lowest cost option, especially for healthy teams.
Do I have to offer coverage if I have fewer than 50 employees?
No, but doing so helps with retention, tax deductions, and recruitment.
Can I offer coverage to remote employees in Texas?
Yes, most carriers allow it, but brokers can help set it up properly.
Can I switch plans mid-year if my business grows?
In most cases, yes. Speak with our brokers to learn more.
Final Thoughts–The Best Group Health Insurance in Houston Depends On You
There is no single “best” plan. But there is a best-fit plan for your business. If you’re not comparing level-funded, ICHRAs, and regional PPOs, you could be overpaying or underdelivering.
Looking for the best group health insurance in Houston in 2025?
Schedule your free consultation with PCIS today. We’ll help you compare plans, save money, and take care of your team.
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