The Small Business Benefits Dilemma
Ask any small business owner about health benefits and you'll hear the same story: group health insurance is too expensive, but not offering benefits makes it harder to hire and retain good people. It's a trap that keeps many small businesses from growing — and it's one that the traditional insurance industry has very little incentive to solve.
The average annual cost of employer-sponsored health insurance in 2026 is approximately $8,000 per employee for single coverage and over $22,000 for family coverage. For a small business with 10 employees, that's a potential $80,000-$220,000 annual expense before you've paid a single other business cost.
HealthShare offers a different model — one that is gaining traction among small business owners who are tired of watching their benefits budget disappear into a system that doesn't serve their team well.
How HealthShare Works for Small Businesses
There are two primary ways small business owners use HealthShare to provide healthcare benefits to their teams.
The first approach is employer-sponsored HealthShare membership. The employer selects a HealthShare program — such as Zion HealthShare — and contributes to or fully covers the monthly membership cost for employees. Because HealthShare contributions are significantly lower than group insurance premiums, this approach can deliver meaningful benefits at a fraction of the cost. An employer covering a Zion HealthShare Direct Membership for a single employee in their 30s might spend $204-$327 per month — compared to $600-$800 per month for comparable group insurance.
The second approach is a Health Reimbursement Arrangement (HRA), specifically a Qualified Small Employer HRA (QSEHRA) or an Individual Coverage HRA (ICHRA). Under these arrangements, the employer sets a monthly dollar amount that employees can use to purchase their own health coverage — including HealthShare memberships. This approach gives employees flexibility to choose the coverage that works best for them while the employer controls costs with a defined contribution model.
The Cost Advantage
The math is compelling. A small business owner with five employees who switches from group insurance to employer-sponsored Zion HealthShare memberships might reduce their monthly healthcare spend from $4,000-$5,000 to $1,500-$2,000 — saving $2,500-$3,500 per month, or $30,000-$42,000 per year. That is money that can be reinvested in the business, used to increase employee compensation, or returned to the owner.
For a business operating on thin margins, this kind of savings can be the difference between profitability and struggle.
What to Tell Your Employees
Introducing HealthShare to employees requires clear communication. Many people have never heard of HealthShare and may be skeptical — especially if they've been on traditional insurance their entire working lives. The key points to communicate are that HealthShare is a legitimate, legal alternative to insurance used by hundreds of thousands of Americans; that members can see any licensed provider they choose; that the monthly cost is significantly lower; and that the IUA model replaces the traditional deductible.
It is also important to be transparent about what HealthShare does not cover — particularly the phase-in period for pre-existing conditions — so employees can make informed decisions.
Combining HealthShare with Direct Primary Care
One of the most effective benefits packages for small businesses in 2026 combines a HealthShare membership for major medical coverage with a Direct Primary Care (DPC) membership for routine care. A DPC membership typically costs $50-$100 per employee per month and provides unlimited primary care visits, basic lab work, and preventive services with no additional copays.
The combined cost of DPC + HealthShare for a single employee is often $150-$400 per month — still dramatically less than group insurance — while providing comprehensive coverage for both everyday health needs and major medical events.
Is HealthShare Right for Your Business?
HealthShare is an excellent fit for small businesses whose employees are generally healthy, whose owners want to control benefits costs without eliminating coverage entirely, and whose team values transparency and personal responsibility in healthcare. It is particularly well-suited for businesses in industries with younger, healthier workforces — technology, creative services, trades, and professional services.
It is less ideal for businesses with employees who have significant pre-existing conditions requiring immediate coverage, or for businesses in states with specific regulations around employer-sponsored health benefits that may affect HealthShare's applicability.
If you're a small business owner spending more than $500 per employee per month on health benefits, it is worth having a conversation about whether HealthShare could deliver better value for your team. Use the calculator on this site to get a sense of what Zion HealthShare would cost for your employees, and reach out if you'd like to discuss a group arrangement.