So I would have to ask the question, "Why don't startups provide group health insurance?" If you want good employees, pay for them. In most states, if you hav

So I would have to ask the question, "Why don't startups provide group health insurance?" If you want good employees, pay for them. In most states, if you have 2 employees you are eligible for a group plan. In a few states even a single founder is eligible. You aren't just computing with large companies either. At my last job I worked for a small business. Less than 25 employees. We had group health insurance. Talk to an insurance agent. It is not as hard as it seems and if you go with a high deductible plan, it is not as expensive as it seems either.