Top 5 insurance companies in US:
Offering health insurance is a significant decision for employers, but it can be difficult to know where to begin, especially for small businesses without an HR department or a benefits specialist to assist.
However, putting in the time and research to establish a formal health benefit plan is well worth it. Offering an employer-sponsored health insurance plan has several advantages, including helping to retain and attract employees, differentiating your company, and contributing to a happy and healthy workforce.
In this article, we’ll look at the top 25 health insurance companies in the United States and provide alternative health benefit options for employers who want something other than traditional group health insurance plans.
The top 25 health insurance companies in the United States, ranked by market share
Understanding which health insurance companies are trustworthy and offer a diverse range of products and medical providers is a good place to begin your search for excellent health benefit plans.
The top 25 health insurance companies in the United States are listed in descending order by market share size, according to NAIC1.
The top 25 health insurance companies in the United States are listed in descending order by market share size, according to NAIC1.
To clarify, market share does not guarantee quality care or that the company will maintain its position throughout the year.
However, market share size is a good indicator of a company’s competitiveness, financial health, and structural security, and insurers with larger market shares have higher direct written premium amounts.
How much do health insurance companies get in premiums?
This represented a 11.4% increase in premium spending from US consumers from 2021, totaling $898 billion.
UnitedHealth, which tops our list, wrote approximately $221 billion in premiums in 2022. Blue Cross Blue Shield of Massachusetts, on the other hand, wrote off $8.6 billion.
Going forward, the health industry anticipates continued increases in medical service demand due to delayed treatment during the COVID-19 pandemic, worsening health conditions, and older and more vulnerable patients requiring care.
Given this, employers of all sizes can better attract and retain employees by providing a health plan and other additional benefits that will support necessary medical services in the future.
Why HRAs and health stipends may be a better option for small employers.
With rising premiums, small and medium-sized businesses may struggle to budget for group medical insurance. However, there are additional options for organizations that cannot afford a traditional health benefit plan. Health reimbursement arrangements (HRAs) are one of these options.
An HRA is a tax-free health benefit that allows you to reimburse employees for out-of-pocket medical expenses, such as health insurance premiums. Employers can manage their budgets by establishing an allowance, while employees gain greater flexibility and control over their health benefits.
We’ll go over four types of health benefits that may be suitable for you and your employees.
Qualified small employers HRA
A qualified small employer. HRA (QSEHRA) is a health benefit for businesses with fewer than 50 full-time equivalent employees (FTEs) that do not provide group health insurance coverage. Employers can set a budget-friendly allowance, and employees can choose the type of health insurance policy that best suits their individual medical needs.
The allowance is flexible, allowing you to receive tax-free reimbursements for individual health insurance premiums and other out-of-pocket expenses. If you’re curious about which expenses are eligible for reimbursement, our interactive expense tool includes the full list of expenses outlined by the federal government in IRS Publication 502.
Individual Coverage HRA
The individual coverage HRA (ICHRA), like the QSEHRA, is a health benefit that allows employees to receive tax-free reimbursement for individual health insurance premiums as well as other medical services and expenses.
