Small businesses benefit from offering their employees health insurance — attracting and retaining talent becomes easier, financial benefits like tax credits become available, and usually there’s an uptake in productivity. However, picking the right healthcare plan for your small business is certainly a challenge.

Humana insurance overview

Humana offers impressive health coverage and added benefits to its members, as well as a range of flexible plans to try to accommodate the different needs of the various types of small business.

Humana isn’t as widely known as some of its competitors, perhaps because it’s only available in 22 states. If you’re in the south, west, or midwest, there’s a good chance that you can take advantage of Humana’s low prices and generous benefits. But even if you have their nationwide PPO plan you should still be able to find a provider in any of the 50 states.

However, as Humana is currently only available in 22 states they’re hard to recommend as a national provider. Check to see if Humana is available in your area and be conscious of how plans vary state-to-state.

Check out our roundup of the Best Health Insurance for Small Business

Humana features

Humana’s plans and their features can change depending on your state. To make sure you’re up-to-date with the latest features available in your area, check Humana’s website.

However, Humana offers an online service called MyHumana that you can access wherever you are. Through MyHumana, you can manage your payments and claims. Customer support is also available online or over the phone if you have questions about your health insurance or account status.

Where Humana really shines is on the extra features they offer members. Going beyond the industry average of providing simple information and health advice online, Humana have introduced HumanaVitality, an online rewards program to help members build healthier lifestyles. Accrued points can be spent on a range of products and services, such as health foods or sports equipment.

Another benefit that goes well beyond what traditional health insurance companies offer is access to the Humana Guidance Centers, found across the states where Humana operates.

Humana Guidance Centers are real-world locations where members can attend exercise classes and even cooking classes and various social activities. Members can even just go along to talk to a Humana representative about your insurance. You can attend these Humana’s centers if you’re not a member but on less generous terms.

Humana plans for small businesses

Humana offers an unusually broad range of health insurance plans for small businesses, with variations in different aspects like copays, deductibles, and coinsurance to offer employers a better chance to find a plan that’s right for their company health benefits.

Humana plans suitable for small businesses include:

• Humana Simplicity
• Level Funded Premium
• Self-Funded Plans
• High Deductible Health Plans
• Humana Copay Plans
• Coinsurance Plans

We’ll now consider the advantages and disadvantages of each of these small business health insurance plans.

The Humana Simplicity Plan

Aimed at providing a simplified experience for members, the Humana Simplicity Plan lets employees decide on their copays while offering 100% payment for all services covered after deductibles.

This plan also covers in-network preventive care and wellness incentives, appealing to employers who want to reduce sick days and improve wellbeing.

Level Funded Premium Plan

If your small business has 10 employees or more, you may be able to sign up to the Level Funded Premium Plan. The main advantage of this plan is the significant tax savings with refunds available for claims surplus. Humana’s Level Funded Premium Plan is flexible, based on self-funding. It also includes:

• Comprehensive medical coverage
• Pharmacy plans
• Wellness programs

Self-Funded Plans

For small businesses looking to keep their employees’ premium payments down, the self-funded plans from Humana may be attractive. They help employers keep their healthcare costs relatively stable month-to-month. Premiums are paid monthly and administrative help is available. Remember that plans with lower premiums tend to have higher out-of-pocket costs.

High Deductible Health Plans

Similar to the self-funded these plans, these come with low premiums on the basis of a higher deductible. Coverage includes medical treatment and drug prescriptions. Two key benefits include 100% coverage for annual in-network exams and the ability to pair your plan with a health savings account.

Humana Copay Plans

Also including 100% payment coverage for annual in-network exams, Humana copay plans come with a flat fee for services and reduced costs for care from in-network doctors and healthcare facilities.

Coinsurance Plans

Coinsurance plans from Humana provide 100% coverage for preventive exams. They also feature discounts on other medical services from in-network providers. These discounts are a result of Humana negotiating with these providers on behalf of their members, and business employees pay a part of the final price as their contribution.

Alternatives to Humana

While Humana provides significant benefits to those who are able to access it in their state, there’s no doubt that it’s limited reach makes it unattainable to other small businesses in other areas. Small businesses in those states may consider a larger health insurance company with a stronger national presence, such as UnitedHealthcare or Blue Cross Blue Shield (BCBS).

Humana: The verdict for small businesses

Humana offers impressive health coverage and added benefits to its members, as well as a range of flexible plans to try to accommodate the different needs of the various types of small business.

However, as Humana are currently only available in 22 states it’s hard to recommend them as a national provider. We recommend checking to see if Humana are available in your area on their website and be conscious of how plans vary state-to-state.