What percentage of health insurance is paid by employers?

What percentage of health insurance is paid by employers? -

When evaluating a new or existing health insurance program, your company contribution strategy is an important consideration. In simple terms, how much will be used up in coverage, and percent of health insurance is paid by employers?

With the health insurance provided by the company, the employer must pay a minimum percentage and employees pay the remaining amount, usually through payroll deduction. So what percent do employers pay?

Nationwide, Kaiser Family Foundation found the average percent of health insurance paid by employers is 83 percent for single coverage and 72 percent for family coverage . Let's dive into the statistics a little deeper

Note -. This blog is based on our new infographic, 7 truths about the cost of health insurance in America. Check out the full infographic here.

Employers pay 83 percent of health insurance for single coverage

In 2015, the average health insurance policy provided by the company totaled $ 6,251 per year for individual coverage. On average, employers paid 83 percent of the premium, or $ 5.179 per year. Employees paid the remaining 17 percent, or $ 1.071 per year.

For family coverage, the average totaled $ 17.545 per policy year with employers contributing on average 72 percent or $ 12.591. Employees paid the remaining 28 percent, or $ 4,955 per year.

Small Employers contribute significantly less family coverage

For small employers, however, the data tells a different story. According to the survey in 2015 KFF / hRet, small employers (defined as employers with 3-199 employees) tend to contribute significantly less for family coverage

For small employers :.

• The average policy for individual coverage totaled $ 6,163 per year.
• The mean percent paid by employers for single coverage was 85 percent, or $ 5,264 per year.
• The average policy for family coverage totaled $ 16.625 per year.
• The mean percent paid by employers for family coverage was 65 percent, or $ 10,720 per year.

means health insurance contribution paid by the employer by employer size

	Small employers	large employers	All employers
single Coverage	85% [19450105264] $ / year	5142 82% $ / year	83% $ 5179 / year
family coverage	65% [194501010720] $ / year	85% 1330 $ / year	72% $ 12,591 / year

Source - KFF / hRet

Why small employers contribute less to cover the family? Speculation is cost.

Health insurance is expensive with the cost increase per year for 0 percent of companies. In an effort to maintain coverage and manage costs, increase employee cost sharing for family coverage is a common approach.

alternative contribution strategies

As small employers struggling with health insurance contribution strategies and tight budgets, they often turn to alternative strategies contribution

for example, instead of buying and paying for a health insurance policy provided by the company, small employers provide a defined contribution funded by the employer -. an allocation to the individual members purchased employee health insurance premiums. As we wrote earlier this week, the individual health insurance costs average 40 percent less than the coverage of comparable employers.

The use of a rebate program compliant health care, small employers can set any monthly contribution for employees to use on health insurance premiums. By opting for this type of strategy defined contribution, small employers offer tax-free health benefits without having to deal with costs, participation requirements, or minimum contribution percentages associated with the insurance provided by the company.

Conclusion

When looking at what percent of health insurance is paid by employers, we see that there are differences between small and large companies. Across the country, employers contribute an average of 83 percent for individual coverage and 72 percent for family coverage. Smaller employers tend to pay slightly more (85 percent) of the simple cover and much less (65 percent) for family coverage. Due to the high cost and traditional political contribution requirements of health insurance provided by the company, many small employers are taking a second look at individual health insurance and a contribution (reimbursement) defined strategy.

Do you have questions about health insurance contribution strategies or Medicare small business? Leave a question below. We will help you to answer.

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