How Much Health Insurance Does Employer Cover?

A question I get quite a bit is how much health insurance does employer cover. The answer varies from person to person but generally there is a standard rate that the employer pays for health insurance along with a standard deductible amount that the employee needs to pay. So, in general terms, how much health insurance does employer pay can be found by taking the annual salary of the employee and dividing it by the number of hours worked. In this case, the employee would only need to pay a certain percentage of his annual salary towards his health insurance premium.

how much health insurance does employer pay

Many employers also provide their employees with a portion of the cost of their health insurance. This cost of the health plan is typically tax deductible. It is important for employees to understand how much health insurance does employer cover so they are well prepared for the time when they need to purchase their own health insurance. Some people work at very well paying jobs and do not need to buy health insurance, but other employees have more caring responsibilities and need to be fully aware of how much they can expect to pay for health insurance. When an employee knows what the typical cost of health care is in his area, he will be able to budget his out of pocket expenses.

The next time you are asking yourself how much health insurance does employer cover ask yourself if your employer covers the entire cost. If not, and there are many that do not, there are ways to receive a partial amount or find ways to pay for the cost yourself. Remember, the most important thing you want to do is to provide yourself and your family with the best possible health insurance possible so when you are in need of health care, you have adequate coverage.