The amount an employer pays in health insurance premiums varies depending on the type of health plan chosen and the number of employees enrolled in it. Generally, employers pay an average of 82% of the total premium for employee-only coverage, and about 69% for family coverage.
Employers are not legally required to pay for any portion of health insurance premiums, although some employers do decide to partially or fully cover their employee’s health insurance. The amount employers typically pay depends on the plan offered and the number of people enrolled in the plan. The premium an employer pays is usually calculated as a percentage of the total premium.
In most cases, employers pay the bulk of the cost of employee health insurance — typically 82% of premium costs for employee-only coverage and 69% of premium costs for family coverage. However, some employers also require employees to cover part of the cost of health insurance, either in the form of contributions to the premium or using a cost-sharing program such as a health savings account (HSA), in which the employee contributes money to cover out-of-pocket medical expenses.
In addition to the percentage of premium costs employers pay, employers also incur administrative costs related to providing health insurance, such as fees for enrollment and claims processing. These fees vary depending on the size of the employer and the type of plan offered, but typically amount to 5–10% of premium costs.
Overall, the amount an employer pays for health insurance premiums depends on the type of plan chosen, the number of employees enrolled, and the employer's policy for cost-sharing. Most employers pay an average of 82% of the cost of employee-only coverage and 69% of the cost of family coverage. These costs can be partially or fully offset by administrative fees, employee contributions, and cost-sharing programs.
