Ten employees is the size where the ICHRA question gets serious. Under five, most Florida owners want the simplicity of one plan. Over 25, the recruiting value of a curated group plan usually carries the day. In between, a fixed-budget ICHRA and a traditional group plan are both realistic, and the right answer depends on the roster, the budget, and what the team expects. This guide lays out the trade-offs for a Florida business of about ten people.
TL;DR
A traditional group plan gives a Florida team of 10 one curated plan, guaranteed issue, a fixed premium, and the strongest recruiting signal, in exchange for participation and contribution rules. An ICHRA gives a fixed monthly budget, no participation minimum, and employee choice on the individual market, in exchange for employees shopping for themselves and an affordability calculation you must get right. Owners can enroll in a group plan regardless of entity type; sole proprietors, partners, and more-than-2 percent S corporation shareholders generally cannot participate in an ICHRA. We price both structures on the same census before recommending either.
The Two Structures in Plain English
Quick answer: A group plan is one health plan the business buys and employees join. An ICHRA is a tax-free monthly allowance the business sets and employees spend on individual plans they pick themselves.
With a group plan, the business is the policyholder. It picks one or two plans from a Florida carrier, pays a share of the premium, and employees enroll through payroll. With an ICHRA, an Individual Coverage Health Reimbursement Arrangement, there is no group policy. The business defines a monthly allowance, each employee buys an individual plan on Healthcare.gov or off-exchange, and the business reimburses premiums up to the allowance. Both are deductible to the business and tax-free to the employee when set up correctly. Our Florida ICHRA guide covers the mechanics in detail.
What a Group Plan Gives a Team of 10
Quick answer: One plan everyone understands, guaranteed issue with no health questions, a fixed monthly premium, and a benefit that reads as a real employer plan when you are hiring. The cost is living inside participation and contribution rules.
At ten people, a Florida group plan is straightforward to issue. Participation is easier than at five, because one waiver no longer swings the ratio, and contribution can be set at a level the budget supports. Employees get an ID card, a network, and a deductible they can compare with what friends at bigger companies have. In competitive hiring markets that recruiting signal is worth real money.
The business also keeps control of plan design. If the team skews young, an HSA-eligible plan with an employer HSA contribution may fit. If it skews older, a richer PPO may be worth the premium. A team of ten can often offer two plans side by side. The trade-off is that the group plan renews every year at the carrier's new rate, and the business absorbs or passes on the increase.
What an ICHRA Gives a Team of 10
Quick answer: A budget you set and control, no participation minimum, and each employee picking the plan that fits their doctors and family. The cost is that employees shop the individual market themselves, and Florida's individual market has been volatile.
The ICHRA's strongest case is budget certainty. The allowance is the cost, period. There is no renewal shock, because there is no group renewal. There is also no participation rule, which matters for a team where several people already have coverage through a spouse and would rather not join a group plan.
The weaker side is the individual market itself. Florida uses the federal exchange, Healthcare.gov, and per the state rate filings summarized in our Florida self-employed guide, individual rates rose sharply for 2026 with further increases proposed for 2027, and several carriers have exited or consolidated for 2027. An allowance that covered a good plan last year may not this year. Employees also have to shop, enroll, and substantiate premiums, which an ICHRA administrator smooths but does not eliminate. When an ICHRA is first offered, a special enrollment period opens, so the team does not have to wait for January.
The Affordability Rule
Quick answer: If the ICHRA allowance makes coverage "affordable" under ACA rules for an employee, that employee cannot take a Marketplace premium tax credit. If it is unaffordable, the employee can decline the ICHRA and keep the credit. Set the allowance without running this per wage band and you can make lower-paid employees worse off.
This is the design detail that decides whether an ICHRA helps or hurts a Florida team. With the enhanced premium tax credits gone after 2025, fewer employees have a large subsidy to protect, but the calculation still has to be run for every wage band on the roster. A ten-person team with a wide pay range is exactly where a flat allowance can quietly strand someone. We run the affordability test before recommending any allowance amount.
Owners: Who Can Participate
Quick answer: Owners of any entity type can enroll in a group plan, with the tax treatment varying by entity. Under an ICHRA, C corporation owners generally can participate; sole proprietors, partners, and more-than-2 percent S corporation shareholders generally cannot.
For many Florida owners this settles the question. If you want coverage for yourself through the business and you run an S corporation or an LLC taxed as a partnership, a group plan puts you on the same plan as your team and your premium is deductible through the entity rules. Under an ICHRA, you would be buying your own individual coverage outside the arrangement and taking the self-employed deduction instead. Neither is wrong, but the difference is real and it belongs in the comparison from the start.
Side by Side for a Team of 10
| Question | Group plan | ICHRA |
|---|---|---|
| Budget predictability | Fixed premium this year, renews annually | Fixed allowance, no renewal shock |
| Participation rules | Yes, majority of eligible employees | None |
| Employee choice | One or two plans you pick | Any individual plan in their county |
| Recruiting signal | Strong, reads as a real employer plan | Weaker, requires explaining |
| Owner participation | All entity types | C corporation owners; others generally excluded |
| Employee effort | Enroll through payroll | Shop, enroll, and substantiate premiums |
| Main risk | Renewal increases | Affordability design and individual market volatility |
How We Decide
Quick answer: We price a group plan and an ICHRA on the same ten-person census and answer three questions: what does each cost the business, what does each leave the employee paying, and does anyone end up worse off. Then we recommend one.
The comparison starts with ages, ZIP codes, and wage bands. From there we quote the group plan from Florida's small-group carriers and model an ICHRA allowance against the individual plans actually available in each employee's county. A team of ten that is young, spread across counties, and full of people with a spouse's coverage often lands on the ICHRA. A team of ten that is hiring against firms with real benefits, or where the owner wants to be on the plan, usually lands on the group plan. We tell you which one your numbers support and why.
Key Takeaway
At ten people both structures are real options. The group plan wins on simplicity, recruiting, and owner participation. The ICHRA wins on budget control and freedom from participation rules. The census decides, and the affordability rule is the detail that cannot be skipped.
Frequently Asked Questions
Can a Florida business of 10 offer both a group plan and an ICHRA?
Not to the same class of employees. The rules allow an ICHRA for one legally defined class and a group plan for another, such as full-time versus part-time, but you cannot offer an individual the choice between the two.
Does an ICHRA have participation requirements?
No. That is one of its main advantages for small teams where several employees already have coverage elsewhere.
Can the owner of an S corporation use the ICHRA?
Generally no. More-than-2 percent S corporation shareholders, partners, and sole proprietors are typically excluded from participating in an ICHRA, though they often have other routes to deductible coverage. C corporation owners generally can participate.
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Fewer than 25 employees? That is exactly who we work with. See the guides for 2 to 10 and 10 to 25 employees.
Fewer than 25 employees? That is exactly who we work with. See the guides for 2 to 10 and 10 to 25 employees.