There are two ways that employees share in the cost of the group insurance program - through their payroll deduction to obtain coverage and through their obligation to pay deductibles and co-payments at the time of service.
Survey data indicates that the percentage of employee-only coverage paid by the employer has hovered around 80% for the last fifteen years. Therefore, employees electing single coverage contribute about 20% of the total premium.
The same survey data shows that employers have modestly scaled back on their subsidy of family coverage over the same time period. Today, employers generally contribute 65% to 75% toward the total cost of providing "employee, plus one dependent" and/or "family" coverage.
With so many dual-income families, employers are employing strategies to discourage enrollment in their plan when a working spouse has access to coverage through their own employer.
C.M. Smith can examine your demographics and help you craft a contribution strategy to balance the employer cost obligation with logical employee contributions.
