What types of health insurance plans are available for small plumbing businesses in Severance?

Small plumbing businesses in Severance can choose from various options, including traditional group health plans, Health Reimbursement Arrangements (HRAs) like ICHRA, or by directing employees to individual plans on Connect for Health Colorado, potentially with QSEHRA support. PPO, HMO, and EPO plans are all available on the state marketplace.

Can plumbing contractors deduct health insurance premiums as a business expense in Colorado?

Yes, if structured correctly. For group plans, premiums are generally 100% tax-deductible for the business. Owners of S-corps, partnerships, or LLCs (who are not eligible for group plans) may be able to deduct premiums for individual plans through the Self-Employed Health Insurance Deduction, provided they meet IRS criteria and are not eligible for other employer-sponsored coverage.

What is the minimum number of employees required for a group health plan in Colorado?

In Colorado, a small business generally needs at least two full-time equivalent employees to offer a traditional group health plan. This typically excludes the owner's spouse or dependents if they are the only other employee. However, other options like HRAs can work for businesses with fewer employees.

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

Small Business Health Insurance for Plumbing Contractors in Severance, Colorado

Severance plumbing businesses in Weld County can access 6 confirmed marketplace carriers in Rating Area 4 for 2026.
Small group health plans for plumbing businesses often require a minimum of 2 full-time employees in Colorado.
Health insurance premiums for group plans are typically 100% tax-deductible for the business, offering significant savings.
Colorado's Connect for Health Colorado marketplace offers HMO, EPO, and PPO options for individual and family plans.

For plumbing contractors operating in Severance, Colorado, securing reliable health insurance for your team is a crucial business decision. Whether you're a sole proprietor looking for individual coverage or managing a growing crew, understanding your options is key to attracting and retaining skilled workers while managing costs. In Severance, a town with a population of 10,130, and across Weld County, businesses have several avenues for providing health benefits, ranging from traditional group plans to flexible Health Reimbursement Arrangements (HRAs) that allow employees to choose their own individual plans on Connect for Health Colorado.

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What Are Your Health Insurance Options as a Plumbing Business Owner in Severance?

Plumbing businesses in Severance, like many small employers, face a unique set of challenges and opportunities when it comes to health coverage. The right choice depends on your business size, budget, and employee needs.

Weld County, home to Severance, has a population of 350,396 and an uninsured rate of 8.0%, highlighting the importance of access to coverage. Major medical facilities like Banner North Colorado Medical Center and Uchealth Greeley Hospital in Greeley serve residents of Weld County, providing essential acute care services. Options available include:

Traditional Group Health Plans: These are employer-sponsored plans where the business typically contributes a portion of the premium for employees and their families. In Colorado, small group plans generally require at least two full-time employees (excluding the owner if they're the only one).
Health Reimbursement Arrangements (HRAs): HRAs allow businesses to reimburse employees for health care expenses, including individual health insurance premiums. Common types include ICHRA (Individual Coverage HRA) and QSEHRA (Qualified Small Employer HRA), offering flexibility and defined contribution benefits for the employer.
Individual Health Insurance via Connect for Health Colorado: Employees can purchase plans directly through Colorado's state-based marketplace, Connect for Health Colorado. Depending on income, they may qualify for premium tax credits and cost-sharing reductions, making coverage more affordable. The business can choose to support this through an HRA.

Understanding Group Health Insurance for Plumbing Companies

For many established plumbing businesses with a few employees, a traditional group health plan remains a popular choice. These plans offer a defined benefits package and can foster a sense of security and loyalty among your team.

Key Features of Small Group Plans in Colorado:

Feature	Description for Small Group Plans
Eligibility	Generally requires 2+ full-time equivalent employees (FTEs). The owner counts as one, and often a non-owner employee is needed.
Employer Contribution	Typically, employers contribute a minimum percentage (e.g., 50%) of the employee's premium.
Tax Benefits	Employer contributions are 100% tax-deductible as a business expense. Employee contributions may be pre-tax.
Plan Types	HMO, EPO, and PPO plans are widely available.
Guaranteed Issue	Small group plans are guaranteed issue, meaning carriers cannot deny coverage based on employee health status.

Choosing a group plan involves selecting a carrier and a specific plan design (e.g., PPO, HMO, or EPO) that balances network access, deductibles, and monthly premiums.

Navigating Individual Coverage for Your Plumbing Team in Severance

For very small plumbing businesses, or those seeking more flexibility, directing employees to individual plans on Connect for Health Colorado, potentially supplemented by an HRA, can be an effective strategy.

Benefits of Individual Plans (with or without HRA):

Employee Choice: Each employee can choose a plan that best fits their personal health needs and budget from the Connect for Health Colorado marketplace.
Potential for Subsidies: Employees with household incomes between 100% and 400% of the Federal Poverty Level (FPL) may qualify for significant premium tax credits, reducing their monthly costs. Colorado expanded Medicaid (Health First Colorado) in 2014, so adults up to 138% FPL may qualify for Medicaid directly.
Defined Contribution: With an HRA, your business sets a fixed amount to contribute, helping you control costs while still providing a valuable benefit.
Broad Plan Availability: In Colorado, the marketplace offers a variety of plan types, including HMO, EPO, and PPO options, ensuring diverse choices for your team.

This approach can be particularly appealing for businesses with varying employee demographics or those who prefer a hands-off approach to plan administration.

Health Insurance Carriers in Severance

For 2026, 6 carriers offer marketplace plans in Rating Area 4, which includes Severance and all of Weld County. These carriers provide a range of options for individual and family plans, as well as small group plans for eligible businesses. The confirmed carriers serving this area are:

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

It's important to compare offerings from each of these carriers, considering factors like network size, specific plan benefits, and premium costs, to find the best fit for your plumbing business and its employees.

Making the Right Health Insurance Decision for Your Severance Plumbing Business

Deciding on the best health insurance strategy for your plumbing business in Severance involves weighing several factors. Consider your budget, the number of employees, their specific health needs, and your long-term business goals.

For 1-person businesses (sole proprietor/single owner): You'll likely enroll in an individual plan through Connect for Health Colorado. As a self-employed individual, you may be able to deduct premiums under certain IRS rules.
For businesses with 2+ employees: Explore both traditional small group plans and HRA options. A licensed agent can help you compare quotes, analyze tax implications, and determine which structure offers the best value and benefits for your team.
Consider employee retention: Offering competitive health benefits can be a significant advantage in attracting and keeping skilled plumbing professionals in the Severance area.

Regardless of your choice, a licensed health insurance producer can provide tailored advice, help you navigate the complexities of plan selection, and ensure your business complies with all Colorado and federal regulations. Their expertise is invaluable and comes at no direct cost to you.

Frequently Asked Questions

What is Connect for Health Colorado?

Connect for Health Colorado is the state-based health insurance marketplace where individuals, families, and small businesses can shop for and enroll in health plans. It's the only place to get financial assistance (subsidies) to help pay for coverage in Colorado.

Are PPO plans available on Connect for Health Colorado in Severance?

Yes, PPO plans ARE available on-exchange through Connect for Health Colorado in Severance, specifically in Rating Area 4. This means marketplace shoppers can choose from HMO, EPO, and PPO structures, offered by carriers such as Denver Health Medical Plan and HMO Colorado, among others.

Can I get Medicaid for my employees if their income is low in Colorado?

Yes, Colorado expanded Medicaid (known as Health First Colorado) in 2014. Adults with income up to 138% of the Federal Poverty Level (FPL) may qualify for Medicaid at little to no cost. Employees whose income falls within this range should apply through Colorado PEAK.