How Much Do You Have to Pay For Your Employees Health Insurance (Legally)?

May 19, 2014

So you’re thinking about offering your employees health insurance, but you want to know what you’re getting yourself into first.

That’s pretty smart. The savvy business owner in you is taking charge.

The simple, no fuss, answer is half.

Whatever the total cost of the health insurance is for each employee, you have to pay a minimum of 50 percent.

You can offer several plan choices to your employees, know that the cost of those different plans have to be split down the middle.

It’s possible this brand new health insurance plan you’re cooking up and so excited about, might not be received with the same enthusiasm from your staff.

If you offer a plan with a straight 50/50 split and no ones biting... Well, then you are going to run into another minimum requirement with participation.

Just like you need to pay for half of the overall cost, you need at least 75 percent of your eligible employees to take the health insurance.

If not, well… Let’s just say I told you so.

If that’s the case, you might need to consider upping the ante on your contribution.

I know, that’s the last thing you wanted to hear, but I’m just trying to help you solve your problem of offering health insurance to your company.

The Advice

Before you get any bright ideas, you’re going also want to know that you have to pay the same amount for everyone for the same coverage.

That means you can’t pay for 65 percent of your employee of the month's health insurance and 50 for everyone else.

Also, you might want to know that if you decided politely ignore the minimum participation health insurance companies have been know to knock on doors to perform participation audits.

No, they don’t physically show up at your door, but you can be sure these participation audits will become with common with health care reform.

Watch the short video below for more information on your requirements for paying for health insurance for your company.

You can watch this video on YouTube by clicking here. You might also be interested in subscribing to our channel on YouTube so you will never be at a loss for an insurance answer.

This video is part of a five-day-a-week series that promises to answer one of your questions every day we are open for business. If you want to come along for the ride, click the subscribe button on the left:

If you would like some help with your life insurance or want to make sure I'm a real human being, you can send me an email, give me a call at 440-964-8211 or talk face to face over the internet.

Giangola Insurance Agency, Inc.

1000 Lake Ave.
Ashtabula, OH 44004
Phone: 440-964-8211

Monday 9:00 AM - 5:00 PM
Tuesday 9:00 AM - 5:00 PM
Wednesday 9:00 AM - 5:00 PM
Thursday 9:00 AM - 5:00 PM
Friday 9:00 AM - 5:00 PM
Saturday Closed
Sunday Closed