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Health Insurance for Small Business Owners in California: Solo to 20 Employees
The right answer changes with headcount. Here's the path for California business owners.
Just you (and family)
You're an individual buyer. Subsidy-eligible after deductions → Covered California. Above the line and healthy → private shared-network PPO on Cigna, Aetna and PHCS PPO. Deduct premiums above the line. California has the highest top state income tax rate in the country, so the self-employed health premium deduction is worth real money here.
Two lives — you plus one
A spouse on payroll, a partner, or one W-2 employee opens the small-group market, which is guaranteed-issue with employer-style networks. For two healthy people it's often close to two private plans; for two people where one has a condition, it's frequently the best answer.
3–20 employees
Level-funded and traditional small-group plans. Employer contribution is tax-deductible to the business, and offering coverage is a hiring advantage in Los Angeles's labor market. Under 50 employees there's no mandate to offer it — it's a choice.
Mixed 1099 and W-2 teams
Common in California: a couple of W-2 staff and a bench of 1099 contractors. The W-2s go on a group plan; the contractors each buy individually, and we can set them all up through the same office so nobody falls through.
California regulates non-ACA coverage more tightly than most states, and the state mandate and Covered California's state subsidies change the math for many people, so private options here are narrower and the honest answer is often a careful comparison, not a promise of savings.
Check your options — tell us your headcount and we'll map the path.