The Current State of Health Insurance in Hospitality:
How OS BENEFiTS is Changing the Game for Independent Restaurants


In the world of independent restaurants, tight margins, staffing challenges, and limited time create unique pressures for owners. Adding to this complexity is the need to offer quality health benefits to attract and retain employees. Health insurance is no longer a luxury—it’s essential. However, with traditional health insurance options often being prohibitively expensive, many restaurant owners feel they have no affordable path forward.

Enter OS BENEFiTS, a health benefits solution created by and for the hospitality industry. Offering affordable, ACA-compliant health insurance and wellness resources tailored for small businesses, OS BENEFiTS is designed to empower independent restaurants to support their teams without breaking the bank.

Why Health Benefits Matter for Independent Restaurants

Health benefits are not just a tool for compliance—they are a business strategy that can directly impact a restaurant's success. Employees with access to health insurance are more likely to remain loyal, reducing turnover costs and fostering a more stable and experienced team. In today’s competitive job market, offering health benefits also helps attract top talent by demonstrating a commitment to employee well-being. Furthermore, accessible healthcare coverage allows employees to address health issues early, reducing absenteeism and maintaining productivity levels.

  • We Know:  The restaurant and foodservice industry is the nation’s second largest private sector employer, providing 15.5 million jobs – or 10% of the total U.S. workforce. (National Restaurant Association).
  • We’ve Seen: Only 32% of hospitality workers have healthcare coverage, compared to 77% of private industry workers. (According to a 2021 report by the Bureau of Labor Statistics).
  • We Understand: 50% of U.S. families can’t afford their deductible, and to top it off, 33% of U.S. families decided not to seek care due to cost in the last 12 months. (According to research from The Kaiser Family Foundation).

Independent hospitality businesses often operate with narrow profit margins, making it difficult to balance the health and wellness needs of their employees with the realities of their budgets. The result is an underserved, uninsured community of dedicated professionals—only 32% of hospitality workers currently have healthcare coverage, a stark contrast to the 77% coverage rate for private industry workers.

What Makes OS BENEFiTS Different?

OS BENEFiTS takes a comprehensive approach to health benefits, addressing the specific challenges faced by the hospitality industry. Unlike traditional insurance providers, OS BENEFiTS offers health insurance plans starting at just $239 per employee per month, making it financially feasible for even the smallest restaurants. With stable and predictable rates, owners can budget confidently without worrying about surprise premium hikes.

Our plans are uniquely flexible, designed to cover full-time, part-time, and seasonal employees. This adaptability ensures that no matter how a team’s structure changes throughout the year, their health benefits can keep up. Employers can choose from Essential plans that provide preventive care and virtual primary care or Premium plans that include low co-pays, no deductibles for major services, and prescription drug coverage. For additional customization, affordable dental and vision coverage can be added to meet the specific needs of employees.

Nationwide access to a broad provider network, coupled with 24/7 virtual care options, ensures convenience for employees, no matter their location or schedule. Additionally, OS BENEFiTS includes wellness resources like fitness discounts, mental health support, and family planning services, helping employers foster a healthier, more engaged workforce. All of this is managed through a streamlined, HIPAA-compliant dashboard that simplifies benefits administration, giving restaurant owners more time to focus on running their business.

The Current Landscape: Health Insurance Options for Independent Restaurants

Providing health insurance is a persistent challenge for independent restaurants. High-cost, high-deductible plans and minimal employer contributions leave many employees unable to afford coverage, even though health insurance is one of the most demanded benefits in the industry, second only to paid time off. For an industry with a disproportionately young, lower-income workforce, premiums exceeding $500 per month and deductibles over $5,000 are often out of reach. 

Navigating these options is complex, with each alternative presenting significant drawbacks.  

  • Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) provides tax-free reimbursement for employees' health insurance premiums and medical expenses, offering flexibility for small businesses. However, it places the burden of purchasing insurance on employees and can be administratively complex for both employers and employees.
  • Small Business Health Insurance plans, available through brokers or the ACA's SHOP marketplace, offer access to traditional small-group insurance. Yet, these plans often come with high costs and fluctuating premiums, and SHOP plans require 70% employee participation, which is difficult to achieve in hospitality.
  • Professional Employer Organizations (PEOs) simplify HR management by handling benefits administration as part of a co-employment model. While this can streamline operations, the high fees and loss of direct control can make this option less appealing for smaller businesses.
  • Medicaid, a federal and state program, offers free or low-cost healthcare to eligible employees. While beneficial for some, it’s not universally available and often lacks the comprehensive coverage needed for a diverse workforce.


Why OS BENEFiTS is the Right Choice

OS BENEFiTS offers a tailored solution to the hospitality industry’s challenges, with a unique focus on affordability, flexibility, and comprehensive support. Our Essential and Premium plans meet employees where they are, covering a wide range of needs while keeping costs manageable for employers. With features like virtual care, wellness perks, and customizable add-ons, OS BENEFiTS goes beyond basic coverage to provide holistic support for your team.

Our commitment to transparency ensures that business owners fully understand their options and limitations. While OS BENEFiTS meets the needs of the vast majority of teams, we are actively working to expand offerings for those with chronic conditions or complex healthcare needs.

Invest in Your Team, Strengthen Your Business

Providing health benefits is more than an expense—it’s an investment in your team and the future of your restaurant. OS BENEFiTS helps independent restaurant owners navigate the complexities of health insurance with affordable, flexible, and comprehensive solutions. By prioritizing your employees' well-being, you can build a loyal, engaged workforce while strengthening your business’s bottom line.

To learn more please visit OS BENEFiTS