Small Business Health Insurance in Herriman, Utah

Herriman small businesses can choose between individual plans on HealthCare.gov with subsidies, or small group plans directly from carriers.
In 2026, 5 carriers offer marketplace plans in Rating Area 3, which includes Herriman, providing HMO and EPO options.
Eligible small employers can receive the Small Business Health Care Tax Credit, covering up to 50% of employer-paid premiums.
Herriman's uninsured rate is 2.8% (per U.S. Census Bureau ACS 2024 5-year estimates), significantly lower than the Salt Lake County average of 9.2%.
Utah expanded Medicaid in 2020, offering coverage to adults with incomes up to 138% of the Federal Poverty Level.

Navigating health insurance options for your small business in Herriman, Utah, involves understanding both individual marketplace plans and traditional small group coverage. For 2026, small business owners and their employees in Herriman have access to plans through HealthCare.gov, where subsidies can make individual coverage more affordable, or they can explore small group plans directly from health insurance carriers. Utah's expanded Medicaid program also offers a safety net for lower-income individuals. The best option depends on factors like the number of employees, budget, and desired level of coverage.

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What Are Your Small Business Health Insurance Options in Herriman?

Small business owners in Herriman have several pathways to secure health insurance for themselves and their employees. The primary options include:

Individual Marketplace Plans: Owners and employees can purchase individual plans through HealthCare.gov. This is often the best choice for very small businesses or independent contractors, as it allows individuals to qualify for premium tax credits and cost-sharing reductions based on their household income. In Utah, these plans are exclusively HMO and EPO network types, as PPO plans are not available on-exchange.
Small Group Plans: If you have one or more employees (excluding yourself, a spouse, or a partner), you may be eligible for a small group health plan. These plans are offered directly by health insurance carriers or through brokers. Small group plans typically require the employer to contribute a percentage of the premium, often 50% or more, and can offer a wider range of plan types, potentially including PPOs off-marketplace.
Small Business Health Options Program (SHOP): While Utah utilizes the federal HealthCare.gov, it includes a SHOP marketplace for small employers. However, many small businesses find it more efficient to work directly with a licensed agent or carrier for small group plans, as the SHOP marketplace primarily serves as a gateway to these options.

Understanding the specific needs of your business and employees, along with the financial implications of each option, is crucial for making an informed decision. For instance, Herriman, a city with a population of 59,346 and a median income of $122,650 (per U.S. Census Bureau ACS 2024 5-year estimates), has a relatively low uninsured rate of 2.8%, suggesting a high rate of coverage among its residents. This could indicate a strong preference for employer-sponsored plans or effective use of individual marketplace options.

Understanding the Small Business Health Care Tax Credit

The Small Business Health Care Tax Credit is a significant incentive for eligible small employers in Herriman to offer health insurance to their employees. This tax credit can help offset the cost of premiums, making it more feasible for smaller businesses to provide benefits. To qualify, your business must meet specific criteria:

You must have fewer than 25 full-time equivalent (FTE) employees.
The average annual wage for your FTE employees must be less than approximately $60,000 (this figure adjusts annually).
You must pay at least 50% of your employees' health insurance premium costs.
You must purchase coverage through a SHOP Marketplace or an eligible plan outside the marketplace.

The maximum credit is 50% of the employer-paid premiums for small businesses and 35% for tax-exempt organizations. This credit can be claimed for two consecutive tax years. It's designed to encourage small employers to contribute to their employees' health coverage, helping them attract and retain talent in competitive markets like Salt Lake County, which has a population of 1,196,523 and a median income of $97,494.

Health Insurance Carriers in Herriman

For small business owners and individuals seeking health insurance in Herriman, several reputable carriers offer plans. In 2026, 5 carriers offer marketplace plans in Rating Area 3, which covers Davis, Salt Lake, Summit, Tooele, and Wasatch counties. These carriers provide a range of HMO and EPO plans:

BridgeSpan Health Company: Offers various health plans designed to meet different coverage needs.
Imperial Health Plan of Utah: Provides local coverage options for residents.
Regence BlueCross BlueShield of Utah: A well-established insurer with a broad network in the state.
Select Health: A Utah-based health plan known for its regional presence.
University of Utah Health Plans: Affiliated with the University of Utah Health system, offering integrated care options.

When selecting a plan, it's essential to compare not just premiums but also deductibles, copayments, out-of-pocket maximums, and the specific provider networks. Many of these carriers have networks that include major hospital systems in Salt Lake County, such as Holy Cross Hospital - Salt Lake, LDS Hospital, University of Utah Hospital and Clinics, and Intermountain Medical Center.

Choosing the Right Plan for Your Small Business

Deciding on the best health insurance solution for your small business in Herriman requires evaluating your specific circumstances. Consider these factors:

Number of Employees: If you have no employees (just yourself and a spouse), individual marketplace plans are likely your best bet for potential subsidies. With one or more employees, small group plans become a viable option.
Budget: Assess how much your business can realistically contribute to premiums. The Small Business Health Care Tax Credit can significantly reduce your costs if you qualify.
Employee Needs: Consider what types of plans and networks would best serve your employees. Are they looking for lower premiums (Bronze), balanced coverage (Silver), or more comprehensive benefits (Gold)?
Tax Implications: Employer contributions to group plans are generally tax-deductible for the business. Individual marketplace subsidies reduce employee costs but are not a direct business deduction.

Herriman, part of Utah Rating Area 3, covers a diverse population including Salt Lake County residents. With a median age of 29.8 years and a poverty rate of 4.9%, Herriman's demographics indicate a need for accessible and affordable health coverage options. Salt Lake County is home to 10 acute care hospitals, including Holy Cross Hospital - Salt Lake and University of Utah Hospital and Clinics, offering extensive healthcare resources for residents covered by any of these plans.

Frequently Asked Questions

What defines a small business for health insurance in Utah?

In Utah, a small business is generally defined as having 1 to 50 full-time equivalent employees, excluding owners and their spouses. This classification determines eligibility for Small Business Health Options Program (SHOP) plans and certain tax credits.

Can small business owners in Herriman get ACA subsidies?

Yes, small business owners and their employees in Herriman who purchase individual plans through HealthCare.gov may qualify for premium tax credits and cost-sharing reductions based on household income and family size. These subsidies can significantly lower monthly premiums and out-of-pocket costs.

What is the Small Business Health Care Tax Credit?

The Small Business Health Care Tax Credit helps eligible small employers (with fewer than 25 full-time equivalent employees and average wages below approximately $60,000) cover the cost of providing health insurance. It can cover up to 50% of the employer-paid premiums for two consecutive years, provided the employer contributes at least 50% of the premium cost.

Are PPO plans available for small businesses in Herriman?

For plans purchased through HealthCare.gov, only HMO and EPO plans are available in Utah. PPO plans are not offered on-exchange. However, some small group plans offered directly by carriers outside the marketplace may include PPO options, though these would not be eligible for premium tax credits.

How does Medicaid expansion in Utah affect small business owners?

Utah expanded Medicaid in 2020. This means that small business owners and employees with household incomes up to 138% of the Federal Poverty Level (FPL) may qualify for Utah Medicaid, providing a crucial safety net for those with lower incomes who might not otherwise afford coverage.