How Much Does Health Insurance For Employees Cost?

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   Shane Burt

   President/Senior Insurance Exec., Mid-American Insurance Associates, Olathe, KS

   On Employer sponsored group plans the minimum cost is 50% of the group rate of the employees, which is usually the median rate of the employees added together. But, the employer can elect to pay more than 50%, just no less of the employees premiums. Ex. you have 5 employees that have an underwritten group rate of $200 per month per employee, or $2,400 per year x 5 employees = $12,000 x 50%, which is $6,000 per year. But, this does not include coverage for dependents or the tax implications. That is just the bottom line dollar cost, before any adjustments, and does not take into account the type of insurance coverage selected. There are several ways to get employee coverage, this example of a group plan is just the most common.

   Answered on April 12, 2013

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