What Is the Health Insurance Employer Contribution Percentage?

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For most health insurance plans, there is a percentage contribution for the employer and the employed. Working for a great company can be very beneficial. What is the health insurance employer contribution percentage?

Health Care Reform

For decades, politicians have been talking about health care reform, but what has been accomplished? But isn’t that what politicians do – talk? No matter the politics, you will need to find a reasonable solution for paying your healthcare bill.

Of course, employer healthcare plans are the most lucrative. Large corporations have access to a large pool of individuals. They can sign up with large healthcare providers and get much lower premiums than individuals would.

Health care providers like to work with large corporations. They know that they have valuable assets, so they can pay their bills on time. They can also benefit from the “Economies of Scale”.

They can assign one salesman to a large corporation. Then, they can assign one manager to oversee hundreds or thousands of employees. This allows the health care provider to have the lowest costs while signing up the most people.

If your company has more than 50 employees and you are full-time, you have a good chance of qualifying for health insurance. There is still some turmoil over what the exact qualifications are for employer funded health insurance.

One of the key problems with Health Care Reform was that the largest multinational corporations were not on board. They would find some loophole that allowed them to avoid the requirements. They want to maintain control over how much they pay their workers for health insurance and other benefits programs.

Employer Contribution

Unfortunately, a smaller employer might only have a low-cost, low-benefit health insurance policy. But, at least that is better than nothing, right? The bare knuckles plans are unlikely to cover things, like prescription drugs.

The low-end health insurance policies are also likely to have a high-deductible. You are more likely to have to pay more out-of-pocket expenses. The large companies are likely to offer better health insurance plans covering prescription drugs.

Unfortunately, there is no requirement for the employer to provide a certain percentage for the health insurance plan. So, each company will vary. They also might change their contribution based on how the company is doing.

Read Employee Handbook

Usually, the employer’s contribution to health insurance will be listed in the Employee Handbook. Look under benefits to see what the percentage is. If you still can’t find it, then contact the Human Resources Department.