In a traditional office, providing health insurance often follows a straightforward path through group plans tied to location. But when your team is spread across states—or even continents—the logistics become more complicated. Employers still need to support their staff’s health and well-being, and remote workers expect access to coverage that makes them feel secure.
Below are five practical ways companies can extend health insurance to remote employees, along with considerations for each approach.
1. Traditional Group Health Insurance
How it Works
The most common option for U.S.-based employers is to offer a group health insurance plan through a private insurer. These plans are structured around the company as a whole, giving employees access to coverage at negotiated group rates.
Benefits
- Consistency: Everyone receives the same or very similar coverage, simplifying administration.
- Employee loyalty: Group health plans remain one of the top reasons workers stay with a company.
- Tax advantages: Premiums are often tax-deductible for the business, and employees can pay their share pre-tax.
Challenges
Remote work complicates eligibility. Insurers may restrict coverage to employees located within certain states or regions. For a company with staff in five different states, negotiating a single plan that covers all can be difficult. Employers often need to partner with larger carriers that have multistate networks—or consider alternatives for those living outside the coverage area.
2. Stipends and Health Reimbursements
How it Works
Instead of managing an insurance plan directly, employers can provide a monthly or annual stipend that employees use to buy their own coverage. This can be structured informally (as taxable income) or formally through a Health Reimbursement Arrangement (HRA).
Benefits
- Flexibility for employees: Workers choose the plan that fits their location and needs.
- Scalability for employers: Easy to implement across different regions without juggling multiple insurers.
- Cost control: Employers decide exactly how much they want to contribute.
Challenges
Stipends do not guarantee employees will actually purchase insurance. Unless paired with clear guidance, some staff may skip coverage entirely. HRAs require more administrative setup but provide a compliant framework for tax-free reimbursements.
3. Partnering with Professional Employer Organizations (PEOs)
How it Works
A Professional Employer Organization (PEO) essentially co-employs your staff. The PEO manages HR, payroll, compliance, and often provides access to large-group health insurance plans that might otherwise be out of reach for a small business.
Benefits
- Access to big-company benefits: Even a startup of 10 employees can access robust insurance packages.
- Reduced administrative burden: Payroll, taxes, and compliance are handled under the PEO’s umbrella.
- Nationwide reach: PEOs typically operate across multiple states.
Challenges
PEO services are not free. They usually charge per-employee fees or a percentage of payroll, which can add up. Additionally, you give up a certain level of control over HR processes, which may not appeal to all business owners.
4. Global Health Insurance for International Teams
How it Works
When employees are spread across different countries, traditional national health plans rarely work. Global health insurance providers step in by offering coverage that follows employees regardless of where they live or travel.
Benefits
- Uniform coverage worldwide: Employees in Berlin, São Paulo, and Toronto can access care under the same policy.
- Mobility: Great for staff who relocate often or travel extensively.
- Peace of mind: Workers feel supported no matter where they are based.
Challenges
Global health insurance can be expensive, and not every provider has strong local networks in every country. Sometimes it is better to supplement local coverage with a global policy for emergencies or travel rather than relying on it as the only solution.
5. Supplemental Health Benefits
How it Works
Not every employer can offer full health insurance, but supplemental benefits can still provide meaningful support. Options include telemedicine subscriptions, mental health apps, dental and vision coverage, or wellness allowances for gym memberships and fitness programs.
Benefits
- Affordable to implement: Supplemental benefits cost less than full insurance packages.
- Supports well-being: Remote workers often struggle with isolation and stress; mental health and wellness perks go a long way.
- Competitive advantage: Even small companies can stand out in the job market by showing care for employees’ health.
Challenges
These perks should not be viewed as a substitute for actual health insurance. They work best when offered alongside, or in addition to, a core health coverage option.
Choosing the Right Approach
Consider Your Workforce Location
If your employees are clustered in one state or country, a traditional group plan may be simplest. For a highly distributed team, stipends or global coverage might be more practical.
Balance Cost and Value
Offering health insurance is an investment. Weigh the monthly expense against the benefits of retention, productivity, and employer branding. Workers are far more likely to stay with an employer that prioritizes their well-being.
Stay Compliant
Health benefits are heavily regulated. In the U.S., rules differ between states and company sizes. Internationally, labor laws may require employers to provide or contribute to local insurance. Always confirm compliance before rolling out a program.
Final Thoughts
Remote work has blurred traditional lines of employment, but it hasn’t erased the need for reliable health coverage. In fact, it has made the issue more pressing: employees now expect their employers to be creative and flexible when it comes to benefits. Whether through group plans, stipends, PEO partnerships, global insurance, or supplemental perks, companies that take health coverage seriously show they value their people—not just the work they produce.
Investing in the health of your remote team isn’t only the right thing to do; it’s also one of the smartest long-term strategies a company can make.
