Medical Insurance Insights for Small Startups

As a startup founder or small business owner, providing medical insurance for your team is crucial. However, it can be challenging when you have a smaller team size. Many insurers have minimum employee count requirements, often ranging from 10 to 15 employees. This leaves many startups in a difficult position, either postponing insurance coverage or resorting to paying for dummy employees to meet the minimum requirements.

Recently, we've been researching this issue and have discovered some promising options for smaller teams. We wanted to share our findings to benefit other startups facing similar challenges.

Options for Small Team Medical Insurance

1. Razorpay - Joint Plan with Plum

If you're already using Razorpay for payroll management, this could be an excellent option for you.

• Minimum Employee Count: 5
• Insurer: ICICI Direct (through Plum)
• How to Access: Available through the Razorpay portal

2. Direct with Plum

Plum offers an admin-friendly platform with multiple insurer options.

• Minimum Employee Count: 7
• Advantages: Multiple insurer options, user-friendly administration

3. Onsurity

Onsurity stands out for its affordability and low minimum employee count.

• Minimum Employee Count: 3
• Pricing: Competitive, with lower pricing compared to plans offered directly by insurers
• Plans: Straightforward plans without unnecessary complications

Key Takeaways

1. Lower Minimum Requirements: These options allow startups with as few as 3-7 employees to provide medical insurance.
2. Competitive Pricing: Especially with Onsurity, the pricing is often more favorable than traditional insurer plans.
3. Integration with Existing Tools: If you're using Razorpay, their joint plan with Plum offers seamless integration.
4. Admin-Friendly Platforms: Options like Plum provide user-friendly interfaces for managing your team's insurance.

By exploring these alternatives, startups can overcome the hurdle of minimum employee counts and provide essential medical coverage for their teams. As your startup grows, you can always reassess and switch to different plans that might better suit your evolving needs.

Remember, providing health insurance isn't just about compliance—it's about taking care of your team and creating a supportive work environment. We hope these findings help you in your journey to provide the best for your employees.

Do you have experience with these or other insurance options for small teams? We'd love to hear your thoughts and experiences in the comments below!