The share of total premiums paid by workers is essentially unchanged in 2004. Across all plan types, on average, workers pay 16% of premiums for single coverage and 28% of premiums for family coverage (Exhibit 6.2).

Average employee contributions for single coverage are statistically unchanged from 2003, while average contributions for family coverage grew by $21 per month, or 10% - a similar rate to the average premium increase overall (Exhibit 6.1).

Worker Contributions for Health Insurance Premiums

• The average monthly worker contribution for single coverage is $47 in 2004. For family coverage, the average monthly worker contribution is $222 in 2004, up from $201 in 2003. On average, covered workers contribute $249 more to annual family premiums in 2004 than in 2003 (Exhibit 6.1, 6.3).
• The average percentage of total premiums that workers pay is essentially unchanged in 2004: 16% across plan types for single coverage and 28% for family coverage. Percentage contributions for family coverage have been stable, while those for single coverage declined between 1996 and 2000 (from 21% to 14%) and have been stable since that time (Exhibit 6.2).
• Nearly all firms that offer health insurance contribute 50% or more to the cost of premiums for their employees. Most employers contribute between 75% and 100% of premiums for single and family coverage (Exhibits 6.8, 6.9).
  • Employers are more likely to pay the full cost of single coverage than family coverage. The percentage of covered workers whose employers pay the full cost of coverage is virtually unchanged compared to last year, both for single (21%) and family coverage (7%). Although the percentage of firms paying 100% of the cost of single or family coverage is unchanged from last year, it is lower than in 2001 (32% for single, 14% for family) (Exhibits 6.8, 6.9).
  • All small firms (3-199 workers) are more likely to pay the full cost of single coverage than all large firms (200 or more workers). Forty-two percent of all small firms pay the entire premium for single coverage compared to 11% of all large firms (Exhibit 6.8).
  • Covered workers in all small firms (3-199 workers) are more likely to be responsible for paying 50% or more of the premium for family coverage (28%) than covered workers in all large firms (200 or more workers) (6%) (Exhibit 6.9).
• Covered workers in all small firms (3-199 workers) pay a higher share of family premiums than workers in all large firms (200 or more workers). On average, covered workers in all small firms pay an average of 36% of the premium for family coverage, compared to 24% for workers in all large firms. Covered workers in all small firms pay an average of $282 per month for family coverage, compared to $195 per month paid by covered workers in all large firms (Exhibits 6.4, 6.11).
• Covered workers in lower wage firms—where 35% or more earn $20,000 or less per year—have higher premium contribution rates than covered workers in higher wage firms—where fewer than 35% earn $20,000 or less per year. On average, covered workers in lower wage firms contribute 39% of the premium for family coverage compared to 26% of the family premium paid by covered workers in higher wage firms (Exhibit 6.10). Covered workers in firms with unions also pay less for family coverage than those in firms with no union workers (20% vs. 32%).