The share of total premiums paid by covered workers is essentially unchanged in 2005. Across all plan types, on average, workers pay 16% of premiums for single coverage and 26% of premiums for family coverage. The average monthly worker contribution for single coverage is $51 in 2005. For family coverage, the average monthly worker contribution is $226.
- The average percentage of total premiums that workers pay is essentially unchanged from last year: 16% across plan types for single coverage and 26% for family coverage. Percentage contributions for family coverage have been stable over time, while those for single coverage declined between 1996 and 1999 (from 21% to 14%) and have been stable since that time (Exhibit 6.2).
- The average monthly worker contribution for single coverage is $51 in 2005. For family coverage, the average monthly worker contribution is $226 (Exhibit 6.1).
- On an annual basis, the average worker contribution averages $610 for single coverage and $2,713 for family coverage. Workers in small firms (3 to 199 workers) contribute significantly more ($3,170 annually) on average towards family coverage than workers in large firms (200 or more workers) contribute ($2,487 annually) (Exhibits 6.3, 6.4).
- Virtually all covered workers receive a premium contribution of 50% or more from their employer. The majority of covered workers receive a premium contribution from their firm of between 75% and 100% for single coverage and between 50% and 100% for family coverage (Exhibits 6.8, 6.9).
- The percentage of covered workers whose employers pay the full cost of single coverage is 21% and the percentage of covered workers whose employers pay the full cost of family coverage is 9% (Exhibits 6.8, 6.9).
- Covered workers in small firms (3-199 workers) are more likely to have their employer pay the full cost of coverage than covered workers in large firms (200 or more workers) for both single and family coverage. Forty-one percent of covered workers in small firms have an employer that pays the entire premium for single coverage, compared to 12% of covered workers in large firms. For family coverage, 18% percent of covered workers in small firms have an employer that pays the entire premium for single coverage compared to 5% of covered workers in large firms (Exhibits 6.8, 6.9).
- Covered workers in lower wage firms—where 35% or more earn $20,000 or less per year— pay a higher percentage of their premium costs than covered workers in higher wage firms—where fewer than 35% earn $20,000 or less per year. On average, covered workers in low wage firms contribute 20% for single coverage and 36% of the premium for family coverage while covered workers in high wage firms contribute 15% for single coverage and 25% of the family premium. Covered workers in firms that partially or entirely self fund their health benefits pay a higher share of the premium for family coverage (32%) than covered workers in firms that are fully insured (21%) (Exhibit 6.10).
- Just 10% of covered workers are in firms that vary the employee’s premium contribution based on the employee’s wage level. Small firms (3-199 workers) are much less likely to do so, at 2%, versus 14% for workers in all large firms (200 or more workers). Varying the employee’s premium contribution based on participation in a wellness program is even less common, affecting just 3% of covered workers (Exhibit 6.16).
