Compare Top 2025 Texas Small Business Health Insurance Plans – CoverMile, Savings & Tax Credits

Being a small business owner in Texas, providing health insurance to your employees is not only a competitive advantage but also the most necessary thing in most cases to find and keep the best workers.

However, understanding the availability of health insurance plans in 2025 can be tricky due to the increasing premiums, changed tax regulations, and new market entrants. Here, we are going to analyze the best small business health insurance plans in Texas in 2025 and illustrate the features of CoverMile besides introducing new players such as Texicare, and how to fully use the tax credits and savings.

Why Health Insurance Matters for Small Businesses

It is good to know why health insurance is the thing before coming to the side of comparison.

Providing insurance has the potential to:

Increase motivation and decrease turnover among workers
Lower absenteeism and higher productivity
Bring tax advantages to the business
Make the business eligible for federal tax credits (if it meets the conditions)

Also, with the development of the Affordable Care Act (ACA) and the Internal Revenue Service (IRS) rules, even a single entrepreneur and companies with less than 25 employees have more affordable health coverage—if they can make a right choice.

CoverMile: Personalized Help for the Self-Employed

CoverMile is a platform that operates within the marketplace for insurance and is specifically targeted at those who are self-employed and have a couple of workers (1-5 employees). It is a place to search for the plans that comply with ACA. Their focus is on the optimal use of tax credits, which is done by predicting the income and planning the subsidies.

Key Features:

Assistance for ACA marketplace registration
Facilitates Premium Tax Credits (PTCs) computation
Tools for matching individual and SHOP plans
Particularly during open enrollment or special enrollment periods

Ideal For:

Freelancers
Sole proprietors
Businesses with contractors or minimal staff

2. Texicare: Transparent Plans for Growing Teams

Texicare is making waves in Texas on a mission to empower small businesses with a simple health insurance solution. Their level-funded plans mean that you pay a fixed monthly amount and if any of the claim funds are unspent, then you get a refund at the end of the year. This makes them a very appealing hybrid between traditional insurance and self-insured plans.

Available Plans:

TotalCare: $0 virtual care and mental health visits; 4 $0 in-person visits/year
SimplicityCare: Fixed copays ($25–$75), no deductibles
SavingsCare: High-deductible, HSA-compatible plan with lower premiums

Why Small Businesses Love It:

Predictable costs
Easy to understand
Competitive virtual care features
Access to tax-advantaged HSA accounts

Texicare is ideal for businesses with 5–250 employees who are looking for group benefits without the high volatility of traditional premiums.

3. Oscar Health: Innovative Individual Coverage for Teams

Oscar Health is synonymous with their tech-savvy approach to health insurance, and in 2025, it will be covering 49 Texas counties. Instead of providing conventional group plans, Oscar gives employers the power to provide stipends so that employees can buy their own individual plans—while still being eligible for full ACA subsidies if they qualify.

Perfect for startups that provide flexibility instead of fixed benefits

Employers decide on a monthly budget, and Oscar matches employees with individual plans that fit their needs—going beyond group discounts and using individual tax subsidies to the fullest.</

4. Traditional Carriers: Group Plans from Industry Giants

If your business is more established, then traditional insurers like Blue Cross Blue Shield of Texas (BCBSTX), Aetna, Cigna, and UnitedHealthcare still offer robust PPO and HMO group plans through the Small Group Market (typically 2–50 employees).

Strengths:

Broad networks of providers
Brand recognition
Richer benefit packages
Compatible with Section 125 pre-tax deductions

On the other hand, these companies often definitely still require brokers in order to make the whole quoting and enrollment process easier, and also, mensal premiums can be substantially higher than those at level-funded or individual plans, especially for smaller groups.

5. Savings & Tax Credits: A Hidden Goldmine

Let me show you where small businesses have their opportunities for big savings/

✅ Small Business Health Care Tax Credit (SHOP)

If your business meets these criteria:

If you have less than 25 full-time equivalent (FTE) employees
That average employee wages needs to be under $56,000/year
You pay at least 50% of employees’ premiums

It would then mean that you are eligible to a tax credit of up to 50% of your premium contributions (35% for nonprofits) to be given by the federal government. You can do this for two consecutive tax

The money is not subject to tax while it grows
Money taken out for health care is not subject to tax

✅ Section 125 Plans

Moreover, these pickups also give the workers the ability to pay the premiums and medical expenses pre

6. Comparing the Options

Feature	CoverMile	Texicare	Oscar	Traditional Carriers
Plan Type	Individual/ACA	Group (Level-funded)	Individual via stipend	Group PPO/HMO
Ideal Team Size	1–5	5–250	<50	10–50
Tax Benefits	PTCs, HSAs	SHOP, HSAs	PTCs	SHOP, HSA, Section 125
Costs	Lower if subsidies apply	Mid-range	Flexible (subsidy-based)	Higher premiums
Network Access	ACA plans	Curated networks	ACA + telehealth	Large networks

7. Final Thoughts: Which Plan Is Right for You?

The small business health insurance policy in Texas 2025 that fits you the best will depend on how big your team is, what your budget is, and what business targets you have.

Solo entrepreneurs or very small teams: Consider CoverMile and stick to ACA plans and premium tax credits.
Growing teams (5–50 employees): Explore Texicare or Oscar if you are after flexibility and digital-first care.
More traditional businesses with consistent revenue: Choose group plans through large carriers that allow you to go deeper in coverage and have more provider options.

Pro Tip: Hire a licensed broker or an advisor to assist you in comparing quotes and deciding on SHOP tax credit eligibility. Usually, it is free, and it can be a great saving to you.