If you’re running a small business in California, offering the right health insurance in 2025 isn’t just a benefit—it’s a strategy. With rising premiums, changing regulations, and new carrier options, finding the best group health insurance options for small businesses in California in 2025 can feel overwhelming.
Skyline Benefit, a top-rated California health insurance broker, specializes in helping small businesses design smart, affordable employee health plans. Whether you’re offering coverage for the first time or reevaluating your options this year, this blog breaks down the latest carriers, plans, and cost-saving tips available in 2025.
What Are the Group Health Insurance Options for Small Businesses in California 2025?
In 2025, California businesses with 1 to 100 employees can access flexible, ACA-compliant group health insurance options. These include:
- HMO (Health Maintenance Organization) plans
- PPO (Preferred Provider Organization) plans
- EPO (Exclusive Provider Organization) plans
- HDHPs (High-Deductible Health Plans) paired with HSAs
Small businesses can customize coverage based on budget, network preference, and employee health needs.
How Much Do Employers Have to Contribute in 2025?
In California, employers must contribute at least 50% of the employee-only premium for group health insurance. However, 2025 brings more flexibility:
Contribution Strategy Tip:
Offer a 100% employer-paid base plan (e.g., Silver HMO), and allow employees to upgrade to richer plans like PPOs by paying the difference. This keeps your offering competitive while managing costs.
Which Carriers Offer Group Health Insurance for California Small Businesses in 2025?
In 2025, some top insurance companies offering group health insurance options for small businesses in California include:
- Blue Shield of California – PPO & HMO plans statewide
- Anthem Blue Cross – Known for large provider networks
- Kaiser Permanente – Integrated care with Cost-effective HMO plans
- Health Net – Budget-friendly EPO and HMO plans
- Sharp Health Plan – Great for San Diego-based companies
- UnitedHealthcare – Strong PPO choices for growing teams
Skyline Benefit helps you compare multiple carriers side-by-side for the best fit. Each carrier offers multiple metal tiers (Bronze, Silver, Gold, Platinum) for flexible coverage levels and pricing.
Why Choose a Group Plan Instead of Individual Coverage or ICHRA?
While Individual Coverage HRAs (ICHRAs) are gaining popularity, group health plans still offer:
- Lower out-of-pocket costs for employees
- Better network access and plan consistency
- Stronger tax advantages for employers
- Higher employee satisfaction and retention
Skyline Benefit can help you compare group health insurance plans vs. ICHRA to find what works best for your business.
When Can You Enroll in Group Health Insurance in California?
Small businesses in California can apply year-round, but if you enroll during the Special Open Enrollment Period (Nov 15 – Dec 15), you may qualify for:
- Lower minimum participation requirements
- No DE9C or payroll verification in some cases
- Waived contribution rules with certain carriers
What’s the Easiest Way to Compare Group Health Insurance Options in California?
Instead of searching each carrier individually, work with a broker like Skyline Benefit, who can:
- Quote multiple carriers at once
- Explain the differences between HMO, PPO, and EPO plans
- Help with employee onboarding and renewals
- Ensure compliance with ACA and California regulations
Need Help Finding the Right Group Health Insurance in California for 2025?
Skyline Benefit is an independent health insurance broker in Fullerton, CA, that offers affordable and flexible group health insurance options. Selecting the best group health insurance plans can be overwhelming; our mission is to simplify the process and help our clients every step of the way.
Schedule a consultation today. Call us at: (714) 888-5112