It's typically partly removed from your salary: you join a corporate health-insurance plan, whose premiums are partly but not fully subsidized by the company, with the remaining $x/month after subsidies coming from your paycheck. Some googling suggests that the average employee's share of the premium is $1100/yr for single people, and $5300/yr for those with dependent families. The actual numbers vary (quite a bit) by location and company.
I've seen and paid employer health benefits bills- $15K-$24K is the range depending on the quality of healthplans.
About 10-25% of this is what employees pay as their part of the premium normally, the rest is employer paid. Stingier companies cover 75% of the employee cost and 50% of dependents cost.
People who get their insurance through their employer also typically have no idea how much their insurance premium costs because the average employer pays 70-80% of the actual monthly premium and what gets deducted from your paycheck every month is just the remainder.
My employer subsidized is $650/month for a similar plan, but I don't have a view into what their share is. I'm sure the total is lower though. They have a lot more leverage.
10 years ago, I was paying $900/month for the same plan on my own.
It depends. I work at a tech company as an engineer and insurance eats about $1K/month. My employer contributes only about $400 to the plan.The total plan cost is $1.4K. Keep in mind, while I pay this just for insurance, I am waiting to get a $3,000 dollar bill from the hospital (still!) for when my daughter had to go to the ER in December.
I only just left my job this year. I chose not to get health insurance for rest of year because it's just for myself and I don't use it. (yes, slightly risky but in good health and don't plan to stay funemployed forever)
But if I did, there's the premium tax credit, which caps premiums to some % of your annual income. For a single person, 322% above the federal poverty line is $40k with a 9.56% cap, so you'd pay no more than $318 in premiums a month and whatever you pay extra (say $182 for a $500 premium) becomes a tax credit.
Yeah. The actual cost of an employer group health plan is $7000 per year. If the employee has a family that's $20000 per year. Usually the employer pays for 80% of this and the remaining 20% of the premium is paid by the employee. That's another $2-9/hr.
Most companies don't pay for 100% of health care coverage - and even if they do, that might only be for you, and not for your dependents. The main leverage of private company health insurance is their negotiating power, but it can still be something in the ballpark of $10k/year/person I don't know exact numbers, but definitely Not Cheap.
To add another US data point, for my family of 4 I pay $770 per month for health insurance and my employer pays an additional $1,370 per month.
My health insurance is through my employer, a large publicly-traded company. My insurer is one of the large well known providers.
Our insurance is very mediocre. We pay the first $3,000 out of pocket and 20% of the cost beyond that, but that's only if a doctor is "in network" (which is sometimes hard to find). Out of network doctors have a separate deductible.
I also pay 1.45% of my paycheck to Medicare, and my employer pays another 1.45% on my behalf. Plus my wife and I pay an extra 0.9% of our paychecks for all combined wages above $250,000. But I won't be eligible for Medicare until I'm 65 years old.
My company pays $3,000/month for health insurance for my family of 5. I assume it's pretty good insurance at that price, but we still have to fight the insurance company tooth and nail whenever we have medical bills.
I run a small business and it costs about $2000/Month group premium for a family of 4 and mind you this is the discounted group rate. If you buy similar insurance individually, you will pay over $2500/Month. So give or take, $25K per year per family/employee. Yes the employer gets a tax deduction but if you really think about it, i would rather offer the employee say $35K extra and take a hit in Payroll taxes while the employee gets so much more money for themselves. If only, health insurance was not a scam in this country.
I'm in the US and pay roughly 3.5% of my gross salary as my portion of the insurance premium. I opted for the cheaper HMO (Kaiser) insurance though. My employer pays the other 2/3rds of the premium. (I'm single, no kids)
I'm a self employed consultant in NH. Things may be different in other states so treat this as a data point. For a 2 person, 50+ year old couple, our bronze policy premium is ~$800/mo I think.
The big difference between an employee health plan and going it on your own is the very high deducible ($6K+, double that for a family). You get a break on prescriptions and a once a year physical is included but for everything else you're paying out of pocket for your health care unless you get very sick.
On a related note, you absolutely need to charge enough to cover the extra cost or you are going to make less than if you worked for a company that pays your health insurance.
Can we do the same with health insurance premiums? The average cost of an employer plan is up to $20,000+/year in premiums alone but most people are oblivious to the true cost.
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