56 percent of Americans got health insurance from their employers in 2017. If you have an employer-sponsored health insurance plan, you will have a certain amount deducted from your paycheck to cover your premiums.
Understanding how much is taken out of your paycheck to cover health insurance is essential to figuring out how to best pay for your coverage. If your employer-provided plan is too expensive, it may make sense for you to change to a private plan.
It’s important to ask how much do employees pay for health insurance also because you want to make sure that you’re not overpaying your employer.
How Much Do Employees Pay for Health Insurance?
There are a couple of factors that will influence how much an employee pays for health insurance. The first is what type of insurance coverage they’re getting. Single insurance policies will obviously cost less, while family plans will represent a larger expense on both the employer and employee.
On average, 82 percent of single-person insurance policy premiums are employer covered. That number drops to 71 percent for family plans. Of course, each business will have a different plan and set up.
This means you’ll end up paying 18 percent of your total premiums, or 29 percent under a family plan. You can use a paystub generator to better visualize how these deductions work. This may be necessary if you are self-employed, as a paystub showing deductions is an important financial document.
The average amount that the employer puts into health insurance will also depend on the size of the business. Larger companies usually have more money and can benefit from group discounts, leading to higher contributions.
Smaller and less wealthy organizations, like non-profits, won’t be able to contribute as much. As a result, employees at those organizations will likely pay more each paycheck. In some cases, you may not even have access to an employer-funded health insurance plan.
Are There Alternatives?
You should check to see if your employer offers a health reimbursement arrangement or HRA. HRAs are funds given to you to let you find your own, individual plan. This cuts costs for your employer, while also giving you more choice.
If a low paycheck is preventing you from meeting your medical bills or medications, car title loans may be able to finance your needs.
You should also look into getting a health savings account, or HSA. While you need to be enrolled in a health insurance plan to access an HSA, they allow you to deposit earnings tax-free.
This means that you can save a larger amount of money, under the condition that those funds are spent on healthcare. Check to see if your employer-sponsored plan allows you access to an HSA, or if it’s worth switching to a private plan for one.
Health Insurance Is Complicated
While the correct answer to “how much do employees pay for health insurance” is “it depends,” understanding the general framework for how employer-sponsored health insurance plans work is important. Knowing the options available to you can help you choose the best one for you and your family.
For more information about health insurance and healthcare, read through the financial section of our blog. You can also read more about steel bite pro.