When it comes to offering health insurance to your employees, one of the most important decisions you’ll make is which type of group plan to choose. Each plan comes with its own balance of cost, flexibility, provider access, and employee expectations.
In Arizona, most small businesses have access to the same major plan types—regardless of whether you’re in Phoenix, Scottsdale, Gilbert, or beyond. The right plan depends on your team size, your budget, and how much choice you want your employees to have when it comes to doctors and specialists.
This page will walk you through the most common group health insurance plans offered in Arizona, how they work, and which businesses they tend to work best for.
There’s no one-size-fits-all answer when it comes to group health insurance. The right plan for your Arizona business depends on:
Many insurers also offer “metal tier” plans (Bronze, Silver, Gold, Platinum), which indicate how costs are shared between the employer, employee, and insurance provider. For example:
As a business owner, your job is to balance premium costs with plan value—offering something attractive to your team without overextending your budget.
Not sure where to start? Our brokers can help you compare plan types across multiple Arizona carriers so you can make the right call.
An HMO requires employees to use a specific network of doctors and hospitals, and typically requires referrals from a primary care physician to see specialists.
Employers who want to offer flexibility and long-term savings options, especially for younger or financially savvy employees.
These hybrid plans combine features of fully insured and self-funded plans. Employers pay a fixed monthly amount that covers claims, admin fees, and stop-loss coverage. If claims are low, they may receive a refund.
Arizona businesses with healthy teams that want lower premiums and are open to non-traditional models.
Learn more: Level-Funded Plans Explained
In a self-funded arrangement, the employer pays for claims out-of-pocket rather than paying fixed premiums to a carrier. These are usually only used by larger businesses.
Businesses with 100+ employees or highly stable claim histories.
With so many options available, it can be difficult to know which group health plan is right for your Arizona business. Below is a simplified comparison of the most common plan types based on key decision factors:
| Plan Type | Monthly Premiums | Provider Flexibility | Referral Needed? | Out-of-Network Coverage | HSA Eligible? |
|---|---|---|---|---|---|
| HMO | Low | Low | Yes | Emergencies only | No |
| PPO | High | High | No | Yes | Some |
| EPO | Moderate | Moderate | No | Emergencies only | Some |
| POS | Moderate | Moderate | Yes | Yes | Some |
| HDHP | Low | Moderate | No | Yes (if PPO-based) | Yes |
| Level-Funded | Low–Moderate | Varies by carrier | Varies | Often Yes | Depends |
| Self-Funded | Varies | Customizable | Custom | Custom | Optional |
Want to see pricing for specific plan types?
Check out our Group Insurance Cost Guide or request a quote to get options custom-fit to your business.
Contact Us today to speak with one of our knowledgeable health insurance agents. Let us guide you toward a healthier, more secure future.
In competitive industries like tech, construction, and professional services, offering flexible and robust health benefits can reduce churn and boost recruitment.
Not sure how your options compare? Our team at AZ Health Insurance Agents will help you review plans from top Arizona carriers and choose the one that matches your goals.
An HMO limits coverage to a specific network of doctors and usually requires referrals for specialists. A PPO gives employees more freedom to choose their providers—both in and out of network—and does not require referrals.
HMOs cost less, but PPOs offer more flexibility.
No. Level-funded plans are a hybrid between fully insured and self-funded models. They give you a fixed monthly cost and the potential for a refund if claims are low, but include stop-loss protection to limit risk.
Self-funded plans carry much higher financial risk and are typically used by larger companies.
PPOs and some EPOs typically offer broader statewide or national networks, making them better suited for companies with employees in multiple cities or working remotely across Arizona.
Yes. Many Arizona insurers allow small businesses to offer a “dual option” or a menu of 2–3 plans. You can set a fixed contribution and let employees choose the coverage level that works for them.
No. Only HSA-compatible high deductible health plans (HDHPs) qualify under federal guidelines. Your broker can help verify whether a specific plan meets HSA eligibility requirements.
With so many group health insurance plans available in Arizona, it’s easy to feel overwhelmed. But you don’t have to figure it out on your own.
At AZ Health Insurance Agents, we help business owners across Phoenix, Scottsdale, Gilbert, and beyond:
Whether you have two employees or fifty, we’ll help you find the right fit—and give you clear, no-pressure answers every step of the way.
Ready to get expert help? Request a quote or speak with a licensed Arizona broker today.
At AZ Health Insurance Agents, we understand that your health is your most valuable asset, and we are dedicated to ensuring that you and your loved ones have access to the best healthcare options in Arizona.
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