Small Business Health Insurance for Construction Companies in Lehi, Utah
- Lehi, Utah's construction industry has access to 5 confirmed health insurance carriers offering marketplace plans in Rating Area 4 for 2026.
- Utah expanded Medicaid in 2020, making coverage available for employees with household incomes up to 138% of the Federal Poverty Level.
- PPO plans are NOT available on the HealthCare.gov marketplace in Utah; small businesses will choose between HMO and EPO network structures.
- For small group plans, most carriers require at least two full-time employees, with at least one being a W-2 employee in addition to the owner.
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What Health Insurance Options Are Available for Lehi Construction Businesses?
Small construction businesses in Lehi have several avenues to secure health insurance for their employees. The choice often depends on the number of employees, budget constraints, and the desired level of administrative involvement.Traditional Small Group Health Plans
For businesses with two or more full-time equivalent employees (one of whom is a W-2 employee not counting the owner), a traditional small group health plan is a common choice. These plans are purchased directly from health insurance carriers or through brokers. They typically offer a range of benefits, and the employer usually contributes a portion of the premium. In Utah, small group plans are subject to state regulations that aim to make coverage more accessible and affordable for small businesses. These plans offer a consistent benefit package across the team, which can be a strong draw for employees.Individual Marketplace Plans (HealthCare.gov)
Even if you don't offer a traditional group plan, employees of your construction business can access individual health insurance through HealthCare.gov, the federal marketplace for Utah. Many employees, especially those with lower to moderate incomes, may qualify for premium tax credits and cost-sharing reductions, significantly lowering their out-of-pocket costs. This can be a viable option for businesses that cannot afford group coverage or have a fluctuating workforce. It allows employees to choose plans that best fit their individual or family needs.Health Reimbursement Arrangements (HRAs)
HRAs, such as the Individual Coverage HRA (ICHRA) or Qualified Small Employer HRA (QSEHRA), allow employers to reimburse employees for health insurance premiums and other medical expenses. With an ICHRA, construction businesses of any size can offer tax-free funds for employees to purchase their own individual health plans, including those from HealthCare.gov. This offers flexibility for employees while giving the employer control over costs. QSEHRAs are for businesses with fewer than 50 full-time employees and offer similar benefits.Understanding Utah's Marketplace and Medicaid for Small Businesses
Utah's health insurance landscape offers specific features that impact small construction businesses and their employees. It's important to understand these details when considering coverage options.Plan Types Available on HealthCare.gov in Utah
For small construction business owners and their employees shopping on HealthCare.gov, the primary plan types available are Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) plans. It is important to note that Preferred Provider Organization (PPO) plans are NOT available on-exchange in Utah. This means that marketplace shoppers will choose between HMO and EPO network structures, which typically require members to use a network of doctors and hospitals for covered services. Off-marketplace PPO plans may exist, but they do not qualify for federal subsidies.Utah Medicaid Expansion and Eligibility for Construction Workers
Utah expanded Medicaid in 2020 through a ballot initiative. This is a critical difference from states like Texas and significantly impacts coverage for lower-income construction workers. Adults, including employees of small businesses, with household incomes up to 138% of the Federal Poverty Level (FPL) may qualify for Utah Medicaid. This provides a crucial safety net for workers who might otherwise be uninsured, offering comprehensive health coverage with no premiums and minimal out-of-pocket costs. Additionally, pregnant women may qualify for Utah Medicaid up to 144% FPL, and children through CHIP up to 200% FPL.
Lehi, located in Utah County, is a rapidly growing city with a population of 85,173 residents and an uninsured rate of 5.1% per U.S. Census Bureau ACS 2024 5-year estimates. This is significantly lower than the Utah County average uninsured rate of 7.5%. The city is part of Utah Rating Area 4, which is a single-county rating area encompassing all of Utah County. Health insurance plans available to Lehi residents are tailored to this specific rating area.
Health Insurance Carriers in Lehi
When seeking health insurance for your construction business in Lehi, it's essential to know which carriers offer plans in your specific rating area. In 2026, 5 carriers offer marketplace plans in Rating Area 4, which includes Lehi and the rest of Utah County. These carriers provide a range of HMO and EPO options for both individual and small group plans. The confirmed local carriers for Lehi and Utah County in 2026 are:- BridgeSpan Health Company
- Imperial Health Plan of Utah
- Regence BlueCross BlueShield of Utah
- Select Health
- University of Utah Health Plans
Choosing the Right Plan for Your Construction Business
Deciding on the best health insurance strategy for your Lehi construction company involves weighing several factors.| Factor | Consideration for Group Plans | Consideration for Individual Marketplace Plans | Consideration for HRAs (ICHRA/QSEHRA) |
|---|---|---|---|
| Employee Count | Typically requires 2+ W-2 employees (excluding owner for some plans). | No minimum, employees enroll individually. | ICHRA: any size; QSEHRA: fewer than 50 employees. |
| Cost Control | Employer contributes fixed percentage of premium, predictable costs. | Employer has no direct premium cost; employees use subsidies. | Employer sets fixed reimbursement amount, highly predictable. |
| Flexibility for Employees | Limited choice (usually 1-3 plans selected by employer). | Broad choice of plans on HealthCare.gov. | Broad choice of plans on HealthCare.gov. |
| Tax Advantages | Employer premiums are tax-deductible business expense. | Employees receive tax credits; employer has no tax deduction. | Employer contributions are tax-deductible; employee reimbursements are tax-free. |
| Administrative Burden | Moderate, involves managing enrollment, payroll deductions. | Low for employer, employees manage their own enrollment. | Moderate, involves setting up and administering the reimbursement. |
Next Steps for Your Lehi Construction Company
If your construction business has at least two full-time employees (including one W-2 employee), exploring small group health plans from carriers like Select Health or Regence BlueCross BlueShield of Utah is a strong option. These plans can offer competitive benefits and are a valuable tool for employee retention.
For smaller teams or if budget is a primary concern, consider an HRA like ICHRA. This allows you to contribute to employees' individual health insurance costs, providing financial support without the full commitment of a group plan. Your employees can then choose plans from HealthCare.gov, potentially leveraging subsidies to further reduce their costs.
Many Lehi construction business owners find value in consulting with a licensed health insurance producer. An agent can help you compare group plans, understand HRA rules, and guide your employees through the HealthCare.gov enrollment process, ensuring compliance and maximizing benefits.
Frequently Asked Questions
What are the health insurance options for small construction businesses in Lehi, Utah?
Small construction businesses in Lehi can explore several health insurance options, including traditional group health plans, individual marketplace plans with subsidies (if eligible), Health Reimbursement Arrangements (HRAs) like ICHRA, and potentially Association Health Plans. The best choice depends on your budget, employee count, and desired level of coverage.
Are PPO plans available for small businesses on the HealthCare.gov marketplace in Utah?
No, PPO plans are not available on the HealthCare.gov marketplace in Utah. Small businesses and individuals shopping on-exchange will find HMO and EPO network plans. PPO plans may be available off-marketplace, but these plans are not eligible for premium tax credits.
How does Medicaid apply to small business employees in Utah?
Utah expanded Medicaid in 2020. This means adults, including employees of small construction businesses, may qualify for Utah Medicaid if their household income is up to 138% of the Federal Poverty Level. This provides a safety net for lower-income workers who might not otherwise afford health coverage.
What is the minimum number of employees required for a small group health plan in Utah?
In Utah, a small group health plan typically requires at least two full-time employees, one of whom cannot be the owner or a spouse. The owner often counts towards the total, but there must be at least one W-2 employee in addition to the owner for most small group plans.
Can I deduct health insurance premiums for my construction business in Lehi?
Yes, generally, if your small construction business pays for group health insurance premiums, these are tax-deductible as a business expense. If you use an HRA, the contributions you make to employees' health costs are also tax-deductible. For self-employed individuals, health insurance premiums may be deductible if you meet certain criteria and are not eligible for other employer-sponsored coverage.