Yes — in Florida you can usually offer a small group health plan with just two eligible employees, typically the owner plus at least one W-2 employee, though carriers’ rules on counting spouses vary. If you don’t meet the group minimum, an ICHRA or QSEHRA lets even a one-employee business reimburse individual coverage tax-free.
If you run a small business in DeLand, Orlando, or anywhere else in Central Florida and you’ve assumed group health insurance is only for companies with a big roster of employees, I’ve got good news: that’s simply not true. I work with Florida business owners every week who are shocked to learn that a company with just two people on payroll — sometimes even just the owner plus one employee — can qualify for a real group health plan. You don’t need 20 employees or a fancy HR department. You need the right structure, and a broker who knows how to navigate it.
The 2-Employee Minimum, Explained
Most carriers writing small group business in Florida — Florida Blue and the other carriers active in the small group market — require a minimum of two eligible employees to set up a group plan. (Heads-up for 2027: Florida Health Care Plan and National Health Insurance Co are leaving Florida’s small group market, and remaining carriers’ proposed rates average about 11.4% higher.) In practice, that usually means the business owner plus at least one other full-time W-2 employee, though exact rules on counting spouses and family members vary slightly by carrier, so this is worth confirming plan by plan. Once you clear that bar, you’re generally eligible to shop the small group market just like a company with 40 employees.
This matters because a lot of solo entrepreneurs and micro-businesses in Volusia County assume they’re stuck buying individual coverage forever. The moment you hire your first full-time employee, a whole new set of options opens up — often with better rates, richer plan designs, and the ability to offer a real benefit that helps you compete for talent against bigger employers.
W-2 Employees vs. 1099 Contractors
Here’s where I see the most confusion. If you’ve got a couple of 1099 independent contractors helping out, they typically do not count toward your group eligibility. Carriers are looking for bona fide employees — people you issue a W-2 to, withhold payroll taxes for, and who work a defined schedule for your business. A landscaper who subcontracts out to three other painting crews on a project basis isn’t going to satisfy the “2 eligible employees” rule just because he works with them regularly.
If your business runs heavily on 1099 talent, that doesn’t mean your contractors are out of luck — it just means group coverage isn’t the right vehicle for them. They’d shop the individual ACA marketplace directly, the same way a sole proprietor would. More on that in can I cover independent contractors with group health insurance.
What If You’re a Sole Proprietor With No W-2 Employees?
If it’s just you — no employees, or only 1099 contractors — you won’t qualify for small group coverage, but you’re far from stuck. You’d shop the individual ACA marketplace, where premium tax credits (subsidies) are often available depending on your household income. I sit down with a lot of solo Florida entrepreneurs, freelancers, and gig workers to find an individual plan through Florida Blue, Ambetter, Oscar, or UnitedHealthcare that fits their budget — and many are surprised at how affordable it can be once subsidies are factored in. Just note that enhanced subsidies expired after 2025, so households above 400% of the poverty level (about $63,840 for a single person for 2027 coverage) get no premium tax credit. See health insurance for solo self-employed people.
The Florida SHOP Marketplace
Florida doesn’t run its own state-based small business exchange — instead, Florida employers use the federal Small Business Health Options Program (SHOP) marketplace. SHOP is open to employers with 1 to 50 full-time equivalent employees, and enrolling through SHOP is also the gateway to the Small Business Health Care Tax Credit, which can cover up to 50% of your premium contribution if you qualify (more on that in our post on small business health insurance tax credits). Not every small employer needs to go through SHOP — you can also buy small group coverage directly off-exchange through a carrier — but if you want a shot at that tax credit, SHOP is generally the required path.
No W-2 Employees? Consider an ICHRA
This is the option most Florida business owners have never heard of, and it’s a game-changer for very small employers. An Individual Coverage Health Reimbursement Arrangement (ICHRA) lets you — even as a one-person employer — set aside a fixed monthly reimbursement amount for each employee, who then goes and buys their own individual ACA marketplace plan (Florida Blue, Oscar, Ambetter, UnitedHealthcare — whichever fits them best) and gets reimbursed tax-free up to your set allowance.
- No minimum headcount requirement — works for a business of one employee
- You control the budget completely by setting the reimbursement amount
- Employees get to choose the plan and doctors that work for them
- Contributions are generally tax-deductible to the business and tax-free to the employee
A close cousin is the QSEHRA (Qualified Small Employer HRA) for businesses under 50 employees that don’t offer a group plan. For 2026, QSEHRA reimbursements are capped at $6,450 for self-only and $13,100 for family coverage. Our guide to insuring just one employee affordably compares these options.
For a lot of small Florida businesses — a single-location restaurant, a small medical practice, a two-person real estate team — an ICHRA is often simpler to administer than a traditional group plan, and it scales naturally as you add employees.
Bottom Line for Small Florida Employers
Whether you’ve got two employees, ten, or you’re flying solo, there’s a legitimate path to offering health coverage in Florida — you just need to match the right structure (small group, individual marketplace, or ICHRA) to your specific headcount and W-2 situation. Too many small business owners in DeLand and across Central Florida go years without offering any benefit because they assumed they didn’t qualify.
Frequently Asked Questions
Can a business with two employees get group health insurance in Florida?
Usually yes. Most Florida small group carriers require at least two eligible employees, typically the owner plus one W-2 employee. Rules on whether a spouse counts vary by carrier. Once you qualify, you can shop the small group market like a larger employer, though participation and contribution requirements apply.
Do 1099 contractors count toward small group eligibility?
No. Carriers look for bona fide W-2 employees on payroll. Independent contractors generally don’t count toward the two-employee minimum and can’t be enrolled in your group plan. They’d buy individual coverage on the ACA marketplace, where subsidies depend on their own household income.
What can I offer if I only have one employee?
An ICHRA or QSEHRA lets you reimburse an employee’s individual health insurance premiums tax-free with no minimum headcount. For 2026, QSEHRA limits are $6,450 self-only and $13,100 family. An ICHRA has no federal cap but must meet affordability rules if you’re an applicable large employer.
Are small group rates going up in Florida for 2027?
Yes. Proposed 2027 small group rates for Florida’s remaining eight carriers average about 11.4% higher, ranging from roughly 8.4% to 15.5%. Florida Health Care Plan and National Health Insurance Co are leaving the small group market, so affected employers will need to choose a new carrier.
If you’re not sure which path fits your business — small group, ICHRA, QSEHRA, or individual coverage — we’ll look at your headcount, budget, and goals and tell you honestly what you qualify for in a no-cost consultation. Call or text Michael McAllister at 321-230-9536 — he is the owner of Choice Health Insurance Brokers in DeLand, a licensed broker appointed with 200 carriers (NPN 18229135) — or visit choice.healthcare to get started. There is no cost to work with us.