How Much Do Employers And Employees Pay For Group Health Insurance?

Friday, March 8, 2024 15:22 Posted by Admin

Health insurance is becoming a necessity for many US companies to think about. In today’s climate, the employee benefits package is one of the first things potential and current employees consider, so when it comes to increasing employee retention and attracting new talent, large group health insurance plans are a top priority to improve.

If you are now researching a new group plan for your employees, you might be understandably wondering how much it’s going to end up costing you, as well as your employees. Health plans can greatly vary in cost, and it can all come down to finding the right type of package to suit your company and your employees.

Taylor Benefits Insurance Agency is here to help you with just that. Get in touch with us now to find out more!

How Much Do Employers Pay for Group Health Insurance?

According to 2021 data from the Kaiser Family Foundation, the average cost of employee health insurance premiums increased 4% both for family and individual coverage.

The average group health insurance costs for employers was:

  • 73% of the premium, a total of $16,253 a year for family coverage
  • 83% of the premium, a total of $6,440 a year for individual coverage

How Much Do Employees Pay for Group Health Insurance?

The same survey found that employees spending for participation in group health insurance was, on average:

  • 27% of the premium, a total of $5,969 a year for family coverage
  • 17% of the premium, a total of $1,299 a year for individual coverage

As a result, the choice in health insurance coverage for groups doesn’t just impact the company overall, but also the individual costs of the employees, be it for family or individual coverage. It makes it all the more important to ensure companies make the smartest choices in insurance to minimize these costs as much as possible, while still offering employees good coverage for their health expenses.

What Can a Company Do to Minimize These Costs?

The insurance industry provides a plethora of choices, so there are options available for everyone. However, it can be rather difficult for a lot of companies to properly research the market to find the right carrier and insurance plans to suit their needs and expectations.

Both of these factors can influence insurance costs, as do the following:

  • Plan features
  • Company and employee location
  • Contribution amount
  • Employee risk, pool, etc.

To get a group health insurance package that works for you and your employees, it’s essential to take a deep dive into what the market offers and compare different coverages to see what they can bring to the table, and how much they’ll end up costing. This can be a rather time-consuming task to do, which is why Taylor Benefits Insurance Agency is at your service to make matters a lot easier.

How Taylor Benefits Insurance Agency Can Help

Taylor Benefits Insurance Agency is an independent insurance brokerage company that specializes in helping business owners and managers find the right insurance package for their employees.

With over 25 years of experience in this business, we’ve built a strong reputation and an even stronger set of unique resources that can help you:

  • Find the best types of plans that suit your needs and expectation
  • Easily learn more about carriers, what they offer, and how much they cost
  • Get expert support in setting up your employee health insurance package
  • Access industry insights that only our team can offer.

As an independent company, we will conduct market research to help you find the right plan no matter who the carrier is. We’re not bound by any carrier contracts to limit our search, so we’re able to provide all our clients with objective information, and help them make better, informed decisions.

Ready to Learn More?

Taylor Benefits Insurance Agency is happy to help your company find the right group health insurance plan that benefits both you and your employees.

To get started, please reach out to our team by calling 800-903-6066 now, or using our online form to get a free, no-obligations proposal.

Written by Todd Taylor

Todd Taylor

Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.

We’re ready to help! Call today: 800-903-6066