Health Insurance

What’s the difference between small group and large group health insurance?

Group health insurance comes in two different sizes: small and large. Now, the definitions of the two aren’t so straightforward, as each state has a different definition for “small” and “large” group health insurance. 

  • Some states define small group insurance as 1-50 employees and anything above that is large.
  • Other states draw that line at 100 employees: anything above is considered large.

The difference between the two is important because your prices and regulations change based on the size of your group. If you purchase small group coverage, the price is the same for every employer. So it’s up to you who to use for your broker, no matter who you choose you’re going to end up at the same price for the same plans.

With large group coverage, the prices aren’t set and your broker can help negotiate prices down for you. In this case, who your broker is can make a difference in the amount you pay and plans you select.

Since this can get pretty tricky, be sure to check with your state’s definition or a broker to make sure you understand your state’s laws and can select the right health insurance plan for you.


This article provides general information and shouldn’t be construed as legal, benefits, or HR advice. Benefits and insurance regulations may change over time and may vary by location and employer size. So, please consult a licensed broker or appropriately certified expert for advice specific to your business’s benefits options.