Small Business Health Insurance for Salons and Barbershops in North Salt Lake, Utah
- Small businesses in North Salt Lake with fewer than 50 employees are not federally mandated to offer health insurance, but doing so can boost employee retention.
- Eligible salons and barbershops may qualify for the Small Business Health Care Tax Credit, covering up to 50% of employer-paid premiums.
- Health insurance plans in North Salt Lake's Rating Area 3 are primarily Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) networks; PPO plans are not available on-exchange.
- Minimum of two employees (owner + one non-owner) is typically required to establish a small group health plan in Utah.
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What Small Business Health Insurance Options Are Available in North Salt Lake?
Small businesses in North Salt Lake, including salons and barbershops, have several avenues to provide health coverage. The primary options include plans through the Small Business Health Options Program (SHOP) marketplace (part of HealthCare.gov) or directly from private carriers. In Utah, the available plan types on-exchange are Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) plans. PPO plans are generally not available through the federal marketplace in Utah, so your choice for subsidy-eligible plans will focus on HMO and EPO network structures. HMO plans typically require you to choose a primary care provider (PCP) within the network and get referrals for specialists. EPO plans offer more flexibility, allowing you to see any specialist within the network without a referral, but generally do not cover out-of-network care.Understanding the Small Business Health Care Tax Credit for Utah Salons
Many small salon and barbershop owners in North Salt Lake may be eligible for the Small Business Health Care Tax Credit, which can significantly reduce the cost of offering employee health insurance. To qualify, your business must:- Have fewer than 25 full-time equivalent (FTE) employees.
- Pay average annual wages of less than $61,000 per FTE (for tax year 2026).
- Cover at least 50% of your employees' health insurance premium costs.
Health Insurance Carriers in North Salt Lake
North Salt Lake is located in Davis County, which is part of Utah Rating Area 3. This rating area also covers Salt Lake, Summit, Tooele, and Wasatch counties. In 2026, 4 carriers offer marketplace plans in Rating Area 3 for small businesses and individuals. These confirmed-local carriers are:- BridgeSpan Health Company
- Regence BlueCross BlueShield of Utah
- Select Health
- University of Utah Health Plans
Navigating Medicaid and CHIP for Employees in Utah
Utah expanded Medicaid in 2020, significantly impacting eligibility for low-income residents. Adults with incomes up to 138% of the Federal Poverty Level (FPL) may qualify for Utah Medicaid. This means that if some of your salon or barbershop employees earn below this threshold, they might be eligible for comprehensive, low-cost or no-cost coverage through Utah Medicaid. Pregnant women in Utah may qualify for Medicaid with incomes up to 144% FPL, and uninsured children can access coverage through Utah CHIP (Children's Health Insurance Program) if their household income is up to 200% FPL. Applications can be submitted through Utah's Medicaid portal at medicaid.utah.gov. Davis County, with a population of 370,924 and an uninsured rate of 5.7% per U.S. Census Bureau ACS 2024 5-year estimates, benefits from Utah's expanded Medicaid program, providing a safety net for many residents. For your North Salt Lake employees, understanding these thresholds can help them access appropriate coverage, whether through your business or state programs.Choosing the Right Plan for Your North Salt Lake Salon or Barbershop
Selecting the best health insurance plan for your North Salt Lake salon or barbershop involves considering several factors:- Budget: Determine how much your business can realistically contribute to premiums and what out-of-pocket costs your employees can manage.
- Employee Needs: Consider the age, health status, and preferences of your employees. Do they prioritize lower premiums, extensive networks, or lower deductibles?
- Network Access: Given that North Salt Lake is in Davis County, ensure the plan networks include local hospitals like Holy Cross Hospital-Davis or Intermountain Health Layton Hospital, and preferred providers.
- Tax Credits: Evaluate your eligibility for the Small Business Health Care Tax Credit to offset costs.
Frequently Asked Questions
Do I have to offer health insurance to my salon or barbershop employees in North Salt Lake?
No, if you have fewer than 50 full-time equivalent employees, you are generally not mandated by federal law to offer health insurance. However, offering benefits can significantly improve employee retention and satisfaction in the competitive North Salt Lake market.
What types of small business health plans are available in North Salt Lake, Utah?
In North Salt Lake, small businesses can access Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) plans through the Small Business Health Options Program (SHOP) marketplace or directly from carriers. PPO plans are not available on-exchange in Utah.
Can I get a tax credit for offering health insurance to my North Salt Lake salon staff?
Yes, eligible small businesses with fewer than 25 full-time equivalent employees, paying average annual wages below $61,000 (for tax year 2026), and covering at least 50% of premium costs, may qualify for the Small Business Health Care Tax Credit, worth up to 50% of employer-paid premiums.
What is the minimum number of employees required for a small group health plan in Utah?
In Utah, generally, a minimum of two employees is required to establish a small group health insurance plan. This typically includes the owner and at least one other non-owner employee. Solo owners may explore individual plans with subsidies.