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Small group · ICHRA · QSEHRA · Level-funded

Small business health insurance in Michigan (2–50 employees)

Whether you’re hiring your first employees or reworking a renewal, there are more options than a single group plan. We compare them side by side with real Michigan numbers.

Your info goes to one licensed Michigan advisor, never sold. Not to a call center, not to a list of “partners.”

  • 2–50 employees
  • Group vs. ICHRA vs. QSEHRA
  • Proposed 2027: 9.6% avg

Talk to a benefits advisor

Your info goes to one licensed Michigan advisor at Nexus. Never sold. No pitch, no obligation.

This is a request for a conversation, not an application for coverage. Please don’t send employee names, health information or claims details through this form; we’ll set up a secure way to share a census later.

Four ways Michigan small businesses offer health benefits

Small-group planLevel-funded planICHRAQSEHRA
What it isA traditional group policy from an insurerA group plan with set monthly costs and a possible refund if claims run lowYou give a tax-free allowance; employees buy their own individual plansA capped tax-free allowance for employees’ own coverage and medical costs
Employer sizeSmall group (up to 50)Varies by carrierAny sizeFewer than 50 full-time employees, no group plan
Your costYour share of premiums; rates set yearlySet monthly; depends on the groupYou set the allowance, which can vary by employee classYou set it, up to the IRS limit ($6,450 self-only / $13,100 family for 2026)
Employees chooseFrom the plan(s) you pickFrom the plan(s) you pickAny individual plan in their countyTheir own coverage (must have minimum essential coverage)
Good fit whenYou want one shared networkA healthier group wants to control costsStaff live in different areas or you want a set budgetVery small teams starting simple

Sources: HealthCare.gov small-business HRA and ICHRA (“CHOICE Arrangement”) pages; IRS Publication 15-B (2026). The IRS hadn’t published 2027 QSEHRA limits as of October 14, 2026. More: level-funded solutions, ICHRA, small-business guide to ICHRA.

Proposed 2027 Michigan small-group rate changes

Proposed Insurers requested an average 9.6% increase for 2027 small-group plans, as filed with DIFS and subject to approval. That’s lower than the 14.2% average requested in the individual market. [DIFS 2027 Rate Change Requests]

Insurer (small group)Requested 2027 changeCurrent enrollment
Blue Cross Blue Shield of Michigan7.0% Proposed133,192
Blue Care Network of Michigan10.7% Proposed133,899
Priority Health11.6% Proposed87,423
Priority Health Insurance Company10.7% Proposed2,390
Health Alliance Plan (HAP)11.6% Proposed22,605
Alliance Health and Life11.6% Proposed16,845
UnitedHealthcare Insurance Company14.8% Proposed6,612
UnitedHealthcare Community Plan14.5% Proposed756
Small-group market total9.6%403,722

Source: Michigan DIFS, “2027 Michigan Health Insurance Rate Change Requests, Small Group Market (as filed, subject to DIFS approval),” updated July 14, 2026. Your renewal depends on your plan, employees’ ages, area and how much you contribute.

ICHRA in Michigan: where your employees live matters

With an ICHRA, employees shop the individual market, and that market varies a lot by county. In 2026, Kent County had 80 Marketplace plans from 7 insurers, while Saginaw had 42 from 4. The benchmark Silver plan for a 40-year-old ranged from $388.03 in Genesee to $632.60 in Saginaw. [CMS QHP Landscape PY2026]

Affordability for 2027: an ICHRA counts as affordable if the employee’s cost for the lowest-cost self-only Silver plan, after your allowance, is under 10.22% of 1/12 of their household income. If it’s affordable, they can’t take a Marketplace tax credit. If it isn’t, they choose between your ICHRA and the credit. [HealthCare.gov; IRS Rev. Proc. 2026-26]

Employers with 50 or more full-time-equivalent employees also face the ACA employer mandate, so affordability matters for them in a second way. [IRS §4980H]

What we’ll ask for

  • Number of employees, and roughly how many want coverage
  • Employee ZIP codes and ages (a simple census, no health details)
  • What you spend now, or a budget per employee
  • Your current renewal, if you have one

Then we compare group, level-funded, ICHRA and QSEHRA side by side. Just you, or you and a spouse? See self-employed instead.

Compare my options

Already offering a plan?

Use your renewal as the starting point. See the employer renewal checklist.

Someone leaving?

Know your continuation duties. See COBRA for small employers.

Stipend instead?

A taxable stipend is simple but doesn’t get HRA tax treatment. See health stipends vs. HRAs.

Go deeper: small-group guides

ICHRA for Michigan employersAffordability, classes and the county math QSEHRARules and limits for teams under 50 Level-funded plansSet monthly cost with stop-loss 2027 renewal auditMark up your renewal before you sign Churches & nonprofitsChurch-plan, ICHRA and sick-time questions Michigan sick time (ESTA)Now covers employers with 10 or fewer

By region

50 or more employees? See employee benefits for mid-market employers.

2-minute advisor Q&A

Small business health benefits in 2 minutes

A Nexus advisor answers the questions we hear most. (Video coming soon.)

  • Group plan or ICHRA: which fits a small team?
  • What's a QSEHRA and who can use it?
  • What will my 2027 renewal look like?

Frequently asked questions

How much does small business health insurance cost in Michigan?

It depends on the plan, your employees' ages and locations, and how much you contribute. For 2027, Michigan small-group insurers requested an average 9.6% rate increase, as filed with DIFS and subject to approval.

What is the difference between an ICHRA and a QSEHRA?

Both let you reimburse employees tax-free for their own coverage. A QSEHRA is only for employers with fewer than 50 full-time employees and no group plan, with an IRS cap ($6,450 self-only / $13,100 family for 2026). An ICHRA has no cap, works for any size employer and can vary by employee class.

Is an ICHRA affordable for 2027?

For 2027 plans, an ICHRA is affordable if the employee's cost for the lowest-cost self-only Silver plan, after the allowance, is less than 10.22% of 1/12 of household income. If it's affordable, the employee can't take a Marketplace tax credit.

Can a business with 2 employees get group health insurance in Michigan?

Often, yes. Small-group rules and participation requirements vary by insurer, and an ICHRA or QSEHRA can also work for very small teams. An advisor can compare options for your group.

Do I have to offer health insurance to my employees?

Under federal law, the ACA employer mandate applies to employers with 50 or more full-time-equivalent employees. Smaller employers aren't required to offer coverage, but many do to hire and keep people.

Will you sell my information?

No. It goes to one licensed Michigan advisor at Nexus and is never sold.

Where are you on the benefits ladder?

Just you (or you + spouse)Self-employed & individual plans2–50 employeesSmall group, ICHRA, QSEHRA, level-funded50–500 employeesSelf-funding, stop-loss, benchmarks

Keep exploring

Amaze Health virtual careUnlimited visits, about $49/mo (not insurance)Integrity Well-Being & AmazeWellbeing program through payrollICHRASet a budget; employees pick individual plansQSEHRATax-free allowance for teams under 50Level-fundedSet monthly cost with stop-loss protection2027 renewal auditMark up your 2027 renewal before you signChurches & nonprofitsChurch-plan, ICHRA and ESTA questionsMid-market (50-500)Funding options and ACA rules for 50–500Self-funding & stop-lossSpecific and aggregate stop-loss explainedBenefits benchmarkCompare your plan to published dataBroker second opinionWhat to check before you switch brokersSick time (ESTA)Michigan sick-time rules for employersICHRA overviewNexus ICHRA servicesGroup benefitsDental, vision, life and disability

Small-business pages by region

Buying coverage for yourself or your family? See Michigan Open Enrollment 2027.

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