How to Think About "Best"
When you look for the best small business health insurance in Delaware, the lists you find all rank plans without knowing who you are covering. The same plan can be a great fit for a team that works from one office and a poor one for a team with remote employees, part-time schedules, or people who already have strong opinions about their doctors.
So instead of a ranking, this page gives you a way to choose. You will see the questions worth answering about your own team, what is different about offering coverage in Delaware, and the main options to compare. If you are deciding between a group plan and an ICHRA, our side-by-side look at SHOP vs. ICHRA shows how the two differ on cost, control, and paperwork.
In one sentence
The best plan is the one your team can use, your budget can carry, and your renewal calendar can live with.
How to Choose Coverage That Fits
Four questions will point you toward the right kind of plan before you look at a single quote.
Step 1
Start with your people
Write down who would be covered: how many employees, whether they work full time or part time, and where each one lives. Delaware is a small state, so many teams include people who live in a neighboring state, and that can change which plans work for them.
Step 2
Look at the full picture of cost
Think about what the business can contribute each month and what that leaves for employees, including their deductibles and out-of-pocket costs once they use the plan. A plan that looks affordable on paper can still be hard to use if the deductible is out of reach for your team.
Step 3
Match the plan style to your team
A group plan works well when most people are happy with the same coverage. An ICHRA works well when needs differ and you would rather give each person a set amount to choose their own plan. SHOP is another route built for small employers. Ask which one your employees would actually pick.
Step 4
Line up help for the year ahead
Coverage generates questions long after enrollment: new hires, life changes, claims, and renewal. Decide now who your team will call, whether that is you, someone on staff, or an advisor.
What Is Different in Delaware
Federal rules apply in every state, but Delaware adds a few pieces of its own, including how it defines a small employer and its own continuation law. Knowing them early helps you compare options with fewer surprises.
Marketplace
Delaware uses HealthCare.gov
Delaware residents shop for individual coverage on the federal marketplace at HealthCare.gov. That matters if you are considering an ICHRA, since employees on an ICHRA choose individual plans.
Continuation coverage
Delaware's mini-COBRA law
For employees of employers with 1 to 19 employees, who are not covered by federal COBRA, Delaware law lets them continue group coverage for up to 9 months after certain events, such as leaving a job. The employee can be charged up to 102% of the group rate.
Small employer
How Delaware defines it
Delaware defines a small employer as one with no more than 50 eligible employees, most of whom work in the state. A business that employs only its owners and their family members generally does not qualify for plans bought through SHOP.
SHOP
The small business route
Small employers, generally those with 1 to 50 employees, may be able to enroll in SHOP plans through an insurance company or with a SHOP-registered agent or broker. Some eligible employers can also qualify for a small business health care tax credit when they offer coverage through SHOP.
Employers with at least 50 full-time employees, including full-time equivalents, also face additional ACA requirements. These are general points, not advice for your situation. For the source language, see Delaware Code Title 18, § 3571F, Chapter 72, HealthCare.gov's SHOP page, and the IRS employer size guidance.
Your Options in Delaware
Delaware employers can cover their teams in a few different ways. Pick the path you want to learn more about.
Small Group Health Insurance
A shared plan, or a short menu of plans, for your whole team. It suits businesses where most employees are comfortable with the same coverage.
Learn moreICHRA for Delaware Businesses
You decide how much to offer, and each employee chooses an individual plan that fits their own life. It suits teams whose needs and locations vary.
Learn moreSHOP Marketplace vs. ICHRA
See how the small business marketplace and an ICHRA compare on control, paperwork, and how much choice employees get.
Learn moreICHRA vs. Group Health Insurance
Put the two side by side to see how each handles plan choice, day-to-day work, and renewal.
Learn moreCommon Questions About Small Business Health Insurance in Delaware
How do I choose the best small business health insurance in Delaware?
Begin with your team: how many employees you have, where they live, and what each person needs from a plan. Then decide what the business can contribute and compare the main routes, which are a group plan, an ICHRA, and SHOP. Last, decide who will handle enrollment, questions, and renewals. The best choice is the one that fits those answers, not whichever plan tops a list.
What is the difference between a group plan and an ICHRA?
With a group plan, you choose the plan or plans and your team enrolls in what you offer. With an ICHRA, you set an amount and each employee picks an individual plan, and you reimburse them up to that amount. An employer generally cannot offer an ICHRA and a traditional group plan to the same class of employees.
Where do Delaware employees shop for individual coverage?
Delaware uses the federal marketplace at HealthCare.gov, which is where individuals and families compare and enroll in their own plans. That matters if you offer an ICHRA, because employees on an ICHRA must be enrolled in individual coverage to receive the reimbursement.
What counts as a small employer in Delaware?
Delaware law defines a small employer as one that employed no more than 50 eligible employees on at least half of its working days in the prior quarter, with most of them working in the state. Affiliated companies are counted together as one employer. The definition for plans bought through SHOP also leaves out businesses that employ only their owners and family members.
What is SHOP, and how do small employers enroll?
SHOP, the Small Business Health Options Program, is built for small employers, generally those with 1 to 50 employees. According to HealthCare.gov, you can enroll in SHOP plans through an insurance company or with the help of a SHOP-registered agent or broker. Some employers may also qualify for the small business health care tax credit, which generally requires fewer than 25 full-time equivalent employees, coverage offered through SHOP, and an employer share of at least half the cost of employee-only coverage.
What happens to coverage when an employee leaves?
Federal COBRA generally applies to employers with 20 or more employees. For employers with 1 to 19 employees, Delaware's mini-COBRA law lets covered employees and their dependents continue group coverage for up to 9 months after certain events, such as losing a job or reduced hours. The employee can be charged up to 102% of the group rate.
Can I get help comparing options?
Yes. Our advisors are licensed in Pennsylvania, New Jersey, and Delaware and can compare group plans, an ICHRA, and SHOP with you in one conversation. If you are still deciding whether to work with an advisor or broker at all, our guide to whether you need a broker can help.
This FAQ is general information, not legal, tax, or insurance advice. Rules can change and every situation is different, so talk with a licensed advisor about yours.
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Disclosures
We are compensated by the insurance carriers for policies you choose through us. There is no direct cost to you. Compensation may vary by carrier and product. Information on this page is for educational purposes and does not constitute legal, tax, or accounting advice. Please consult your professional advisors about your specific situation. We are licensed to advise clients in Pennsylvania, New Jersey, and Delaware. Contact us to confirm availability in other states.
