As an employer the amount you have to contribute to your employees’ group health plan varies by insurance carrier. Most carriers require you to contribute a minimum of 50% of the cheapest plan you offer to your employees. A few states, like New York, allow you to contribute whatever you would like, going as low as 0% contribution. There is also one month in the year where insurance carriers are legally not allowed to require any contribution at all.
What about contributing 100%?
The implications of contributing 100% towards your employees’ group health plan varies by insurance carrier. Some carriers say that if you contribute 100%, you also have to have 100% enrollment in the plan. Some carriers don’t have that stipulation. When it comes to contributions, it’s important to consult with your broker so that you follow all regulations and also pick an amount that is right for your business.Updated October 16, 2017
This article provides general information and shouldn’t be construed as legal, benefits, or HR advice. Benefits and insurance regulations may change over time and may vary by location and employer size. So, please consult a licensed broker or appropriately certified expert for advice specific to your business’s benefits options.