Updated July 2026 · ColoradoPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Small Business Health Insurance for Accounting and Tax Firms in Greenwood Village, Colorado

What Are the Best Health Insurance Options for Small Accounting Firms in Greenwood Village?

Small Group Health Plans: These are the most common choice for businesses with at least one common-law employee (not including the owner or spouse). In Colorado, small group plans are available through the Connect for Health Colorado's Small Business Health Options Program (SHOP) marketplace or directly from carriers. These plans are guaranteed issue for firms with 1-50 full-time equivalent employees, meaning coverage cannot be denied based on employee health status. They offer predictable monthly premiums and typically require a minimum employee participation rate, often around 70%.

Health Reimbursement Arrangements (HRAs): HRAs allow employers to reimburse employees for healthcare expenses, including individual health insurance premiums, on a tax-free basis. The two most common types are:

• Individual Coverage Health Reimbursement Arrangement (ICHRA): Offers significant flexibility, allowing firms of any size to provide tax-free funds for employees to purchase their own individual health plans. This can be a compelling alternative to traditional group plans.
• Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): Designed for businesses with fewer than 50 employees that do not offer a group health plan. It allows firms to reimburse employees for health expenses and individual premiums up to a certain annual limit (indexed for inflation).

Facilitating Individual Plans: For very small firms or those where employees prefer individual choice, firms can guide employees to purchase plans directly through Connect for Health Colorado. Employees may qualify for premium tax credits based on household income, which can significantly reduce their monthly costs. While the firm doesn't directly provide coverage, it can support employees in navigating the marketplace.

Understanding Small Group Plan Eligibility and Requirements in Colorado

Employee Count: Small group plans are designed for businesses with 1 to 50 full-time equivalent (FTE) employees. This count typically includes full-time employees and a calculation for part-time employees. If your firm grows beyond 50 FTEs, you transition to the large group market rules.

Common-Law Employee: You must have at least one common-law employee on payroll who is not an owner, partner, or spouse of an owner. This distinguishes a true small business from a solo operation.

Participation Rate: Most carriers require a minimum percentage of eligible employees to enroll in the group plan. This is typically 70%. For example, if your firm has 10 eligible employees, at least 7 would need to enroll. This helps ensure the risk pool is balanced. There are exceptions, such as during open enrollment periods or if employees have other qualifying coverage (e.g., through a spouse's employer).

Contribution Requirements: While not a state mandate, many carriers require employers to contribute a minimum percentage towards employee premiums, often 50% or more. This helps make the plan attractive to employees and supports the participation rate.

Greenwood Village-Specific Context: Accounting and tax firms operating within Greenwood Village are part of Colorado Rating Area 1, which covers Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson counties. This means plan availability and rates are consistent across this multi-county region. The local presence of major medical facilities, such as Hca-healthone DBA Swedish Medical Center in Englewood and The Medical Center of Aurora & South Hospital in Aurora, also influences network considerations for your team.

Tax Advantages of Offering Health Insurance for Your Accounting Firm

Employer-Paid Premiums are Deductible: When your accounting firm pays for group health insurance premiums, these costs are generally 100% tax-deductible as ordinary and necessary business expenses. This reduces your firm's taxable income, effectively lowering the net cost of providing benefits. This applies to premiums paid for employees and their dependents.

Employee Premiums are Pre-Tax: If employees contribute to their premiums, these contributions can often be made on a pre-tax basis through a Section 125 Cafeteria Plan. This reduces their taxable income for federal, state, and FICA taxes, saving them money and making the benefit more valuable.

Small Business Health Care Tax Credit: For very small firms (fewer than 25 full-time equivalent employees) that pay average annual wages below a certain threshold and contribute at least 50% of employee premium costs, the Small Business Health Care Tax Credit may be available. This credit can cover up to 50% of the employer's contribution to premiums, providing a substantial financial incentive. To claim this credit, you must purchase a plan through the SHOP marketplace on Connect for Health Colorado.

Self-Employed Health Insurance Deduction: For self-employed owners of accounting and tax firms (e.g., sole proprietors, partners in a partnership, or more than 2% shareholders in an S corporation) who pay their own health insurance premiums, these premiums can be deducted from their gross income. This is an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) and is available even if you don't itemize. This deduction is allowed only if you are not eligible to participate in an employer-sponsored health plan (e.g., through a spouse's job).

Health Insurance Carriers in Greenwood Village

• Cigna
• Denver Health Medical Plan
• HMO Colorado
• Kaiser Permanente
• Select Health
• United Healthcare

Making the Right Choice for Your Greenwood Village Accounting Firm

For firms with 1-50 employees and a desire for traditional benefits: A Small Group Health Plan is often the most straightforward option. It offers a clear benefits package, and the tax deductibility of premiums can significantly offset costs. You'll need to meet participation requirements, but the stability and comprehensive nature of group plans are a major draw. Connect with an agent to explore plans from carriers like Kaiser Permanente or United Healthcare.

For firms seeking maximum flexibility and cost control: Consider an ICHRA or QSEHRA. These arrangements empower employees to choose individual plans that best fit their personal needs while allowing your firm to set a predictable contribution budget. This can be particularly appealing if your workforce has diverse healthcare needs or if you want to avoid the administrative burden of managing a group plan. This approach leverages the robust individual marketplace on Connect for Health Colorado, where employees may also benefit from premium tax credits.

For firms with limited budget or very few employees: Guiding employees to individual plans on Connect for Health Colorado, where they can potentially qualify for premium tax credits, might be the most practical approach. While not a direct employer-sponsored benefit, it ensures your team has access to affordable coverage. Adults with income up to 138% FPL may qualify for Health First Colorado (Medicaid), and those between 100-400% FPL are eligible for significant subsidies on marketplace plans.

Frequently Asked Questions

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