What percent of health insurance is paid by employers in California?

In California, the percent of health insurance paid by employers varies depending on the specific employer and the type of health insurance plan offered. In 2021, the average employer contribution to employee-only health insurance premiums in California was 82%, which means that, on average, employees paid 18% of the premium cost. For family/dependent coverage, the average employer contribution was 70%, and the employee contribution was 30%. It's important to note that these are just averages, and the actual percentage paid by employers may vary based on several factors, including the size of the employer, the type of industry, and the specific health insurance plan offered.

• Large employers tend to contribute a higher percentage of the premium costs than small employers. According to a 2020 survey by the California Health Care Foundation, California employers with 1-9 employees contributed an average of 72% of the premium cost for individual coverage, while those with 1,000 or more employees contributed an average of 87%.
• The type of health insurance plan offered can also affect the percentage paid by employers. For example, in 2021, the average employer contribution to high-deductible health plans (HDHPs) with a health savings account (HSA) was 77% for individual coverage and 63% for family coverage. In contrast, the average employer contribution to preferred provider organization (PPO) plans was 84% for individual coverage and 73% for family coverage.
• Under the Affordable Care Act (ACA), employers with 50 or more full-time employees (or the equivalent) are required to offer health insurance coverage to their employees or face penalties. However, there is no requirement for employers to contribute a specific percentage of the premium costs, so the actual amount paid by employers can vary.
• In California, some employers also offer alternative forms of health benefits, such as health reimbursement arrangements (HRAs) or health care sharing ministries. These arrangements may have different cost-sharing arrangements than traditional health insurance plans, and the percentage paid by employers can vary.

Overall, the percentage of health insurance paid by employers in California can vary widely depending on multiple factors. However, the average employer contribution in California is generally higher than the national average.

For help in getting quotes for your employees as a group, or as individuals, contact Dale Johnsen, 805-870-5080, [email protected]

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