A plain guide to group health insurance for Michigan employers with 2 to 50 employees.
Which plan types fit a small group, what changes as you grow toward 50, and the questions to settle before your next renewal. Written for the owner or HR lead who is making the call without a benefits department.
Three sizes, three different conversations.
2 to 10 Employees
Carrier requirements matter most here. Most carriers set participation and employer-contribution rules, and with a handful of employees one declined enrollment can decide whether a plan is available. We confirm the current requirements before you commit to a plan design.
11 to 25 Employees
Plan choice becomes a real decision at this size. This is where comparing fully insured and level-funded quotes side by side tends to be worth the effort, and where one good renewal review can change the next three years.
26 to 50 Employees
You are close enough to 50 that you should be tracking full-time equivalents. At 50 the federal employer mandate starts, so we help you plan the move early rather than find out from a January filing.
Three ways a small group can buy coverage.
Traditional Fully Insured
The employer pays a fixed monthly premium and the carrier takes the claims risk. It is the easiest model to budget and administer. Rates are set by the carrier under small-group rating rules and renew each year.
Level-Funded
The employer pays a fixed monthly amount that covers expected claims, administration and stop-loss insurance. Some arrangements return part of the difference if claims run lower than expected. Underwriting looks at your group’s health, so not every group qualifies.
ICHRA
The employer sets a monthly allowance by class of employee, and employees buy individual coverage and are reimbursed. It can be offered by employers of any size and gives you a fixed budget. It works best when employees have strong individual-market options where they live.
What changes as you grow toward 50.
Under 50 Full-Time Equivalents
There is no federal employer mandate to offer coverage, and Michigan has no state employer mandate. Offering coverage is a recruiting and retention decision, not a legal requirement.
50 or More Full-Time Equivalents
Applicable large employer rules begin. You must offer affordable coverage to full-time employees or risk penalties, and you file ACA reporting. The affordability threshold is 9.96% of household income for 2026 and 10.22% for 2027.
What employers your size ask us.
How many employees do we need to buy group health insurance in Michigan?
Requirements vary by carrier. Most look at how many eligible employees you have and what share of them enroll, and many set a minimum employer contribution. We confirm each carrier’s current rules before we recommend a plan design.
Do we have to offer health insurance at our size?
Not under 50 full-time equivalent employees. The federal employer mandate starts at 50, and Michigan has no state employer mandate. Many smaller employers offer coverage anyway to recruit and keep people.
Is level-funded better than fully insured for a small group?
It depends on your group’s health and how much variability you can live with. Level-funded can cost less for a healthier group, while fully insured gives the most predictable renewal. We quote both so you can compare them side by side.
When should we start shopping for renewal?
We suggest starting 90 to 120 days before your renewal date. Carriers need time to quote, and your employees need time to review options and enroll.
Can you review a renewal we have already received?
Yes. Send us your renewal and we’ll tell you whether it looks competitive and where we see opportunity. There is no cost and no obligation to move anything.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
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