Health insurance is still the most crucial yet high-cost benefit that small business owners in Arizona must efficiently manage. In 2025, due to inflation that has affected all products from fuel to office supplies, sourcing an affordable group health insurance plan that is still of good quality and at a reasonable price has become more essential than ever.
The reason why offering group health insurance is still relevant in 2025
Health insurance group is not only necessary for meeting legal requirements, but it also serves as a tool for retention, productivity, and competitiveness.
According to the Arizona state law, small businesses with less than 50 employees are not obligated to provide health insurance. Nevertheless, companies with less than 50 workers are increasingly opting to give their employees some coverage, for instance, because of:
- Inc…
- A competitive hiring market
- Incentives for federal taxes
- Productivity benefits from healthier teams
…
This is the question about, who are the group of people, that can get insurance coverage for their group plan in Arizona?
It is necessary for the employer to contribute at least 50% of the employee-only premium, you must provide coverage to all full-time employees you have and at least one full-time W-2 employee (not the owner or spouse) has to be participating if you want to qualify for small group coverage in Arizona.
Knowing these essential conditions you have, let’s now discover the best choices for your group health insurance in Arizona in 2025.
Those are few of the best-rated health insurance companies that provide group health insurance in Arizona (2025).
Some of the leading carriers offering the highest value small group health insurance plans across Arizona are as follows:
- Blue Cross Blue Shield of Arizona (BCBSAZ)
Why It’s Top-Rated:
- Offers broad provider networks throughout the state
- Highly customizable PPO and HMO plans
- Among the most popular with tech companies and healthcare firms in urban areas
Plan Highlights:
- Multiple metal tier options (Bronze, Silver, Gold, Platinum)
- Telehealth covered
- Wellness and rewards programs
- UnitedHealthcare of Arizona
Why It Is A Top-Rated One
- Well known for level-funded plans and flexible group benefits
- Good digital tools and member support
Plan Highlights:
- EPO, PPO, and level-funded options
- All Savers® plans for groups with 5–50 employees
- Tiered provider networks for cost savings
Unique Benefit:
In case the claims are less than expected, the level-funding may become the source of potential premium refunds.
Best For:
Employers seeking a workplace that is filled with healthy employees and who are interested in cost savings.
- Aetna (CVS Health)
Why It Is Popular in Arizona:
- A strong network throughout Maricopa and Pima counties
- Access to walk-in CVS clinics and pharmacy integrations
Plan Highlights:
- ACA-compliant small group plans
- Level-funded options with built-in stop-loss protection
- Employee wellness and mental health resources
Best For:
Businesses that
- Cigna + Oscar (AZ Partnership)
Plans from Cigna + Oscar are a mix of the two worlds – the big and trusted names and simple tech for the new era in the Arizona market.
Pros:
- Plans optimized for virtual care
- Easy claims and enrollment procedures
- Great for startups and digital-first teams </
2025 Average Group Health Insurance Costs in Arizona
Health insurance premiums in Arizona tend to be lower than the national average, though prices vary by region, age group, and plan type.
| Plan Type | Monthly Premium (Per Employee) | Employer Contribution (Est.) |
| Bronze Plan | $450–$550 | $250–$400 |
| Silver Plan | $550–$700 | $300–$500 |
| Gold Plan | $700–$850 | $350–$600 |
| Level-Funded Plans | $500–$650 | Varies (fixed + potential refunds) |
| QSEHRA/ICHRA | N/A (Reimbursement only) | Employer-defined |
Note: Employers typically contribute 50–75% of the employee-only premium. Contributions toward dependents are optional.
Smart Ways to Save on Small Business Health Insurance in Arizona
Here are practical tips to control costs and increase plan value:
✅ Use a Level-Funded Plan
Level-funded plans give you the option to make a fixed monthly payment and, if claims are low, get a refund. This is ideal for teams of 5–50 employees who are in good health.
✅ Implement a QSEHRA or ICHRA
Such Health Reimbursement Arrangements permit you to pay your employees tax-free for their insurance that is individually tailored. You are not obliged to have a group plan, and you manage the finances.
✅ Take Advantage of Tax Credits
In case you have under 25 FTEs with the average salary below $56,000, and you pay at least 50% of the premiums, you could be eligible for the Small Business Health Care Tax Credit of 50% of the premiums for up to two years.
✅ Offer a High-Deductible Plan with an HSA
Use a Health Savings Account (HSA) to accompany a less expensive high-deductible health plan (HDHP). The money that comes in is deductible from the employee’s income, and they get excited about options.
✅ Work with a Licensed Broker
At times, brokers can aid you in carrier comparison, contribution optimization, and compliance, without charging you extra.
What to Consider When Choosing a Plan
Before selecting a plan for your small business, ask:
- What is your total monthly budget per employee?
- Is it more important for employees to have a large network or lower premiums?
- Are most of your employees local or remote?
Self-funded or HRA—which one would provide more flexibility?
Final Thoughts
In 2025, small business owners in Arizona have a plethora of options to provide health benefits that are both affordable and competitive than ever before. They can choose from trusted providers such as Blue Cross and UnitedHealthcare, or select innovative models like QSEHRA and level-funded plans that best fit their needs and budget.
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