Small businesses have a particularly hard time finding good, reasonably-priced insurance coverage. Often, insurance companies are not eager to insure small businesses because the risk pool is small and they tend not to make big profits on them.
When small businesses band together into larger groups, however, they enjoy more purchasing power and they have a larger risk pool, which makes them more attractive to insurance companies. You can usually get more competitive rates for insurance when the groups are larger in number.
Where can you find purchasing alliances? Some communities have Health Purchasing Alliances. These are local, private non-profit groups that get small businesses together and offer them health care benefits at competitive prices.
To find out if your state has health purchasing alliances and how to contact
them, check your phone directory in the state government listings or check with
your chamber of commerce.