What Do Workers and Employers Pay for Employer Sponsored Health Insurance?

An employer sponsored insurance plan is paid for by the company on behalf of their employees. This is how most of the U.S. operates. Most employers pay about 85% of the insurance premiums for their employees while the employer pays about 75% of the premiums for the employee’s dependents. In 2010, the average premium for health coverage on one person was slightly over $5,000 annually. Workers were then asked to pay around 19% or around $900 of this amount. Since the 1990’s these rates have remained rather steady.

The Advantages of Offering Employer Sponsored Health Insurance

It is no secret that as the owner of a business, you should be offering your employees some sort of health and benefits plan. This is one of the only ways an individual can prepare for their future. Luckily, even with the costs of health care, it is beneficial and even fruitful to offer such plans to your employees and here’s why…

• You are likelier to attract professionals in your industry when you are trying to hire on new staff.
• You will notice an increase in employee longevity.
• Your business is more likely to thrive regardless of competition.
• You can rest assured knowing that your employees are receiving the proper healthcare whenever there is an illness or accident. They will have the ability to get well quicker so they can return to work.
• As a business, you will also reap the rewards of certain benefits and even qualify for tax breaks when your plan remains in compliance with local, state and federal laws including the Affordable Care Act.