What is the minimum number of employees required for a small employer medical plan?

A small employer medical plan, according to the guidelines established by the Affordable Care Act and various state regulations, typically requires a minimum of two employees. This criterion is important as it distinguishes small group health insurance from individual plans.

Having at least two employees ensures that there is a shared risk pool, which helps stabilize premiums for the group health insurance. If there were only one employee, the group would not qualify for small group insurance because the risk would solely rest on a single individual.

This requirement is designed to promote a broader distribution of risk among the covered group, which is fundamental to the insurance model. Therefore, the minimum of two employees is seen as a necessary threshold to form a small employer group for medical coverage.