Can I get health insurance for just one or two employees in my Crofton salon?

Yes, small businesses, including salons and barbershops, with 1-50 employees can typically access health insurance through the Small Business Health Options Program (SHOP) on Maryland Health Connection or directly from carriers. If you have only one employee besides yourself, you might consider individual plans with subsidies for them, or a qualified small employer health reimbursement arrangement (QSEHRA).

What types of health plans are available for small businesses in Crofton?

In Crofton, part of Maryland Rating Area 1, small businesses can choose from HMO, PPO, and EPO plans through Maryland Health Connection or directly from carriers. PPO plans are available on-exchange in Maryland, offering more flexibility in provider choice.

Are there tax credits for small businesses offering health insurance in Maryland?

Yes, if you purchase coverage through the Small Business Health Options Program (SHOP) on Maryland Health Connection, you might qualify for the Small Business Health Care Tax Credit. To be eligible, you generally need fewer than 25 full-time equivalent employees, pay average annual wages of less than $60,000, and contribute at least 50% of your employees' premium costs.

Small Business Health Insurance for Salons & Barbershops in Crofton, Maryland

Updated July 2026 · MarylandPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Small businesses in Crofton with 1-50 employees can access coverage through Maryland Health Connection's SHOP marketplace.
Maryland Health Connection offers HMO, PPO, and EPO plan types, with PPOs available on-exchange.
Eligible small businesses may qualify for the Small Business Health Care Tax Credit, covering up to 50% of premium costs.
In 2026, 4 carriers offer marketplace plans in Rating Area 1, serving Crofton and Anne Arundel County.

Navigating health insurance options for your salon or barbershop in Crofton, Maryland, requires understanding both state-specific regulations and local market availability. Small business owners, whether you're a sole proprietor looking to cover yourself and one employee, or managing a larger team, have avenues to secure comprehensive health benefits. Maryland's state-based marketplace, Maryland Health Connection, provides resources and plans tailored for small employers, often including tax credits to make coverage more affordable. It's crucial to evaluate plans that balance employee needs with your business budget, considering factors like network access, plan types, and cost-sharing structures.

Get Your Free Health Insurance Quote

A licensed agent can compare coverage options for you at no cost.

✓

You're all set!

A licensed agent will reach out shortly.

What Are Your Small Business Health Insurance Options in Crofton?

For salon and barbershop owners in Crofton, Maryland, several pathways exist to provide health insurance:

Maryland Health Connection (SHOP Marketplace): The Small Business Health Options Program (SHOP) is part of Maryland Health Connection, designed for businesses with 1 to 50 employees. It allows you to offer a range of plans from different carriers, and you may be eligible for federal tax credits to offset premium costs.
Direct from Private Carriers: You can also purchase small group health insurance plans directly from insurance companies operating in Maryland. While these plans are not eligible for the SHOP tax credit, they can offer more flexibility in plan design and administrative services.
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): If you have fewer than 50 full-time employees and don't offer a traditional group plan, a QSEHRA allows you to reimburse employees for individual health insurance premiums and qualified medical expenses, tax-free. Employees then purchase their own plans, potentially with subsidies, through Maryland Health Connection.
Individual Plans (for employees): If you cannot offer a group plan, your employees can purchase individual plans through Maryland Health Connection. Many may qualify for premium tax credits and cost-sharing reductions based on their household income, making individual coverage more affordable than unsubsidized group options.

Understanding the nuances of each option is key to selecting the best fit for your Crofton salon or barbershop. Factors like the number of employees, average employee wages, and your contribution level will influence eligibility for programs like the SHOP tax credit.

Understanding Maryland Health Connection for Small Businesses

Maryland Health Connection serves as the official state-based marketplace for individuals and small businesses to find health insurance. For small employers in Crofton, the SHOP marketplace simplifies the process of offering coverage.

Eligibility for SHOP Plans

To qualify for small group health plans through Maryland Health Connection's SHOP marketplace, your salon or barbershop must:

Have at least one eligible employee (other than yourself, a spouse, or a family member) and typically no more than 50 full-time equivalent (FTE) employees.
Have a principal business address in Maryland.
Offer coverage to all full-time employees.
Contribute at least 50% of the premium cost for your employees.

Small Business Health Care Tax Credit

One of the most significant benefits of using the SHOP marketplace is the potential to qualify for the Small Business Health Care Tax Credit. This credit can cover up to 50% of the premiums you pay for your employees (up to 35% for tax-exempt organizations). To be eligible:

You must have fewer than 25 FTE employees.
Your average employee wages must be less than $60,000 per year (adjusted annually for inflation).
You must contribute at least 50% of the employees' premium costs.
You must purchase a SHOP plan through Maryland Health Connection.

This tax credit can significantly reduce the cost of providing health benefits, making it more feasible for small businesses like salons and barbershops in Crofton to offer competitive compensation packages.

Health Insurance Carriers in Crofton

Crofton, Maryland, is situated in Anne Arundel County, which is part of Maryland Rating Area 1. This rating area covers Allegany, Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorchester, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Prince George's, Queen Anne's, Somerset, St. Mary's, Talbot, Washington, Wicomico, Worcester counties. In 2026, 4 carriers offer marketplace plans in Rating Area 1:

CareFirst BlueChoice
CareFirst of Maryland
Optimum Choice
Wellpoint

These carriers offer a variety of plan types, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Exclusive Provider Organizations (EPOs). Maryland is one of the states where PPO plans ARE available on-exchange, offering more flexibility for members to see out-of-network providers (though at a higher cost). It is important to compare the specific networks of each carrier to ensure your employees have access to preferred doctors and hospitals, such as Luminis Health Anne Arundel Medical Center, Inc in Annapolis or University of MD Baltimore Washington Medical Center in Glen Burnie, both within Anne Arundel County.

Choosing the Right Plan for Your Crofton Salon or Barbershop

Selecting the best health insurance plan involves considering the unique needs of your business and employees.

Budget: Determine how much your business can realistically contribute to premiums. The Small Business Health Care Tax Credit can help reduce this burden.
Employee Needs: Consider the age, health status, and preferences of your employees. Do they prioritize lower premiums, lower deductibles, or maximum flexibility in choosing providers?
Plan Types: HMOs typically have lower premiums and restrict choice to a network, requiring referrals for specialists. PPOs offer more flexibility with higher premiums, allowing out-of-network care. EPOs are a hybrid, offering network-only care without referral requirements.
Network Coverage: Ensure the plan's provider network includes essential local facilities and specialists that your employees may need. Anne Arundel County, with a population of 598,166, is served by two acute care hospitals: Luminis Health Anne Arundel Medical Center, Inc and University of MD Baltimore Washington Medical Center.
Deductibles and Out-of-Pocket Costs: Higher deductible plans often have lower monthly premiums but require more out-of-pocket spending before coverage kicks in. Bronze and Silver plans are popular for balancing premiums with out-of-pocket costs, while Gold and Platinum plans offer lower out-of-pocket maximums for higher monthly premiums.

Assistance for Low-Income Individuals and Families in Maryland

While this article focuses on small business health insurance, it's important to note that individual employees or their family members may qualify for other programs if their income is low. Maryland expanded Medicaid in 2014, meaning adults with income up to 138% of the Federal Poverty Level (FPL) may qualify for Maryland Medicaid (also known as HealthChoice). This program offers comprehensive, low-cost or free health coverage. Furthermore, Maryland Medicaid covers pregnant women with income up to 250% FPL, providing extensive prenatal, delivery, and postpartum care. The Maryland Children's Health Program (MCHP), the state's CHIP equivalent, covers uninsured children up to 300% FPL. These programs ensure that many Crofton residents have access to care, even if they are not covered by an employer-sponsored plan.

Frequently Asked Questions

How do I enroll my small business in health insurance through Maryland Health Connection?

You can enroll your small business online through the Maryland Health Connection website, by phone, or with the assistance of a certified agent or broker. An agent can help you compare plans, understand tax credit eligibility, and complete the application process.

What is the minimum number of employees required to offer a small group plan in Maryland?

Generally, to offer a small group plan through Maryland Health Connection or directly from a carrier, your business must have at least one eligible employee who is not an owner, spouse of an owner, or dependent.

Can I offer different plans to different employee groups in my Crofton salon?

The SHOP marketplace on Maryland Health Connection allows you to offer employees a choice of plans within a single metal tier (e.g., all Silver plans) or even across multiple metal tiers. This flexibility enables employees to choose the plan that best fits their individual needs and budget.

What is the uninsured rate in Crofton and Anne Arundel County?

Crofton has an uninsured rate of 3.0%, while Anne Arundel County's uninsured rate is 4.7%, both per U.S. Census Bureau ACS 2024 5-year estimates. These rates are generally lower than the national average, reflecting strong access to coverage in the area, often through employer plans or Maryland Health Connection.