Section 6: Worker and Employer Contributions for Premiums1
Workers with health insurance pay on average 16% of the premium for single coverage and 27% of premiums for family coverage. These percentages are similar to those reported in recent years. The average monthly worker contributions are $52 for single coverage and $248 for family coverage.
Covered workers on average contribute 16% of the premium for single coverage and 27% of the premium for family coverage (Exhibit 6.1).
Average monthly worker contributions for covered workers are $52 for single coverage in 2006, statistically unchanged from the $51 reported in 2005. Monthly worker contributions for family coverage rose significantly from $226 in 2005 to $248 in 2006 (Exhibit 6.2).
On an annual basis, the average worker contribution is $627 for single coverage and $2,973 for family coverage. Workers in small firms (3-199 workers) contribute significantly more on average ($3,550 annually) towards family coverage than workers in large firms (200 or more workers), who contribute an average of $2,658 annually (Exhibit 6.6). This difference reflects the relatively low contributions that small firms make towards the premiums for family coverage ($7,756 on average in small firms compared to $8,917 in large firms) (Exhibit 6.5).
Workers covered in HDHP/SOs on average contribute a lower amount for family coverage ($187 monthly; $2,247 annually) than workers covered in other plan types. The average worker contribution for single coverage in HDHP/SOs ($47 monthly; $569 annually) is similar to the amount contributed by workers in other plan types (Exhibit 6.6).
Virtually all covered workers receive a premium contribution of 50% or more from their employer. Eighty percent of covered workers work for an employer that contributes at least 75% toward the premium for single coverage (Exhibit 6.9). Just over one-half (52%) of covered workers work for a firm where the employer contributes at least 75% toward the premium for family coverage (Exhibit 6.10).
The percentage of covered workers whose employers pay the full cost is 23% for single coverage and 9% for family coverage (Exhibits 6.9, 6.10). These percentages are similar to those reported in 2005.
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-three percent of covered workers in small firms have an employer that pays the entire premium for single coverage, compared with 13% of covered workers in large firms (Exhibit 6.9). For family coverage, 17% percent of covered workers in small firms have an employer that pays the entire premium for family coverage, compared to 5% of covered workers in large firms (Exhibit 6.10). However, when workers do not work for a firm that pays 100% of the premium, covered workers in small firms are more likely (24%) to work for a firm that contributes less than 50% of the premium compared to covered workers in large firms (5%) for family coverage.
Covered workers in lower wage firms—where 35% or more earn $20,000 or less per year— pay a higher percentage of the premium for family coverage 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 35% of the premium for family coverage while covered workers in high wage firms contribute 26% of the family premium. Covered workers in firms that partially or entirely self-fund their health benefits pay a lower share of the premium for family coverage (23%) than covered workers in firms that are fully insured (32%) (Exhibit 6.12).
Estimates for premiums, worker contribution to premiums, and employer contribution to premiums presented in Section 6 do not include contributions made by the employer to Health Savings Accounts or Health Reimbursement Arrangements. See Section 8 for estimates of employer contributions to HSAs and HRAs.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Exhibit 6.1: Average Percentage of Premium Paid by Covered Workers for Single and Family Coverage, 1999-2006*
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.2: Average Monthly Worker Premium Contributions Paid by Covered Workers for Single and Family Coverage, 1999-2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.3: Average Annual Firm and Worker Contribution to Premiums and Total Premiums for Covered Workers for Single and Family Coverage, by Plan Type, 2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.4: Average Annual Premiums for Covered Workers for Single Coverage, by Plan Type and Firm Size, 2006
Worker Contribution
Employer Contribution
Total Premium
HMO
All Small Firms (3-199 Workers)
$472*
$3,427
$3,899
All Large Firms (200 or More Workers)
$642*
$3,472
$4,114
PPO
All Small Firms (3-199 Workers)
$491*
$4,014*
$4,505
All Large Firms (200 or More Workers)
$709*
$3,618*
$4,326
POS
All Small Firms (3-199 Workers)
$631
$3,478
$4,109
All Large Firms (200 or More Workers)
$638
$3,599
$4,238
HDHP/SO
All Small Firms (3-199 Workers)
$474
$2,732
$3,206
All Large Firms (200 or More Workers)
$656
$2,932
$3,589
ALL PLANS
All Small Firms (3-199 Workers)
$515*
$3,733
$4,248
All Large Firms (200 or More Workers)
$689*
$3,550
$4,239
*
Estimates are statistically different within plan type between All Small Firms and All Large Firms at p<.05.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.5: Average Annual Premiums for Covered Workers for Family Coverage, by Plan Type and Firm Size, 2006
Worker Contribution
Employer Contribution
Total Premium
HMO
All Small Firms (3-199 Workers)
$4,192*
$6,945*
$11,137
All Large Firms (200 or More Workers)
$2,598*
$8,741*
$11,339
PPO
All Small Firms (3-199 Workers)
$3,497*
$8,296*
$11,793
All Large Firms (200 or More Workers)
$2,628*
$9,124*
$11,752
POS
All Small Firms (3-199 Workers)
$3,519*
$7,187*
$10,706
All Large Firms (200 or More Workers)
$2,885*
$8,688*
$11,573
HDHP/SO
All Small Firms (3-199 Workers)
$2,066
$6,830
$8,896
All Large Firms (200 or More Workers)
$2,409
$7,604
$10,013
ALL PLANS
All Small Firms (3-199 Workers)
$3,550*
$7,756*
$11,306
All Large Firms (200 or More Workers)
$2,658*
$8,917*
$11,575
*
Estimates are statistically different within plan type between All Small Firms and All Large Firms at p<.05.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.6: Average Monthly and Annual Worker Premium Contributions Paid by Covered Workers for Single and Family Coverage, by Plan Type and Firm Size, 2006
Monthly
Annual
Single Coverage
Family Coverage
Single Coverage
Family Coverage
HMO
All Small Firms (3-199 Workers)
$39*
$349*
$472*
$4,192*
All Large Firms (200 or More Workers)
53*
216*
642*
2,598*
ALL FIRM SIZES
$49
$257
$590
$3,079
PPO
All Small Firms (3-199 Workers)
$41*
$291*
$491*
$3,497*
All Large Firms (200 or More Workers)
59*
219*
709*
2,628*
ALL FIRM SIZES
$53
$243
$637
$2,915
POS
All Small Firms (3-199 Workers)
$53
$293*
$631
$3,519*
All Large Firms (200 or More Workers)
53
240*
638
2,885*
ALL FIRM SIZES
$53
$269
$634
$3,226
HDHP/SO
All Small Firms (3-199 Workers)
$39
$172
$474
$2,066
All Large Firms (200 or More Workers)
55
201
656
2,409
ALL FIRM SIZES
$47
$187
$569
$2,247
ALL PLANS
All Small Firms (3-199 Workers)
$43*
$296*
$515*
$3,550*
All Large Firms (200 or More Workers)
57*
221*
689*
2,658*
ALL FIRM SIZES
$52
$248
$627
$2,973
*
Estimates are statistically different within plan type between All Small Firms and All Large Firms at p<.05.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Average Monthly and Annual Worker Premium Contributions Paid by Covered Workers for Single and Family Coverage, by Plan Type and Region, 2006
Monthly
Annual
Single Coverage
Family Coverage
Single Coverage
Family Coverage
HMO
Northeast
$66*
$227
$792*
$2,723
Midwest
51
188*
607
2,257*
South
50
288
595
3,455
West
35*
292
424*
3,508
ALL REGIONS
$49
$257
$590
$3,079
PPO
Northeast
$62
$228
$749
$2,736
Midwest
52
206*
626
2,477*
South
57
292*
682
3,500*
West
37*
223
445*
2,675
ALL REGIONS
$53
$243
$637
$2,915
POS
Northeast
$60
$253
$720
$3,042
Midwest
46
208*
547
2,499*
South
57
291
679
3,498
West
46
293
555
3,514
ALL REGIONS
$53
$269
$634
$3,226
HDHP/SO
Northeast
$39
$195
$473
$2,344
Midwest
52
163
628
1,959
South
57
218
682
2,619
West
NSD
NSD
NSD
NSD
ALL REGIONS
$47
$187
$569
$2,247
ALL PLANS
Northeast
$63*
$230
$750*
$2,765
Midwest
51
201*
615
2,408*
South
56
290*
674
3,476*
West
37*
252
448*
3,029
ALL REGIONS
$52
$248
$627
$2,973
*
Estimate is statistically different within plan type from estimate for all other firms not in the indicated region at p<.05.
NSD: Not Sufficient Data.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.8: Average Monthly Worker Premium Contributions Paid by Covered Workers for Single and Family Coverage, by Plan Type, 1999-2006
1999
2000
2001
2002
2003
2004
2005
2006
Single Coverage
HMO
$28
$26
$32
$38
$42
$46
$47
$49
PPO
27
29
29
39*
44
48
50
$53
POS
27
28
29
40*
41
45
61*
$53
HDHP/SO
^
^
^
^
^
^
^
$47
ALL PLAN TYPES
$27
$28
$30
$39*
$42
$47
$51
$52
Family Coverage
HMO
$124
$131
$150
$164
$179
$223*
$217
$257*
PPO
128
141
153
188*
210*
224
220
243*
POS
141
136
143
180*
206
218
271*
269
HDHP/SO
^
^
^
^
^
^
^
187
ALL PLAN TYPES
$129
$135
$149*
$178*
$201*
$222*
$226
$248*
*
Estimate is statistically different from estimate for the previous year shown at p<.05.
^
Information was not obtained for HDHP/SOs prior to 2006.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.9: Distribution of Covered Workers by Percentage of Premium for Single Coverage Contributed by Their Firm, by Firm Size, 2001-2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.10: Distribution of Covered Workers by Percentage of Premium for Family Coverage Contributed by Their Firm, by Firm Size, 2001-2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.11: Average Percentage of Premiums Paid by Covered Workers for Single Coverage, by Firm Characteristics, 2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.12: Average Percentage of Premiums Paid by Covered Workers for Family Coverage, by Firm Characteristics, 2006
(object placeholder)
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.13: Average Percentage of Premium Paid by Firm for Covered Workers, by Plan Type and Firm Size, 2006
Single Coverage
Family Coverage
HMO
All Small Firms (3-199 Workers)
88%
63%*
All Large Firms (200 or More Workers)
84
77*
ALL FIRM SIZES
85%
72%
PPO
All Small Firms (3-199 Workers)
88%*
68%*
All Large Firms (200 or More Workers)
83*
77*
ALL FIRM SIZES
85%
74%
POS
All Small Firms (3-199 Workers)
84%
67%*
All Large Firms (200 or More Workers)
84
74*
ALL FIRM SIZES
84%
70%
HDHP/SO
All Small Firms (3-199 Workers)
84%
75%
All Large Firms (200 or More Workers)
82
76
ALL FIRM SIZES
83%
75%
ALL PLANS
All Small Firms (3-199 Workers)
87%*
67%*
All Large Firms (200 or More Workers)
83*
77*
ALL FIRM SIZES
84%
73%
*
Estimates are statistically different within plan type between All Small Firms and All Large Firms at p<.05.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.14: Average Percentage of Premium Paid by Covered Workers for Single and Family Coverage, by Plan Type, 1999-2006
1999
2000
2001
2002
2003
2004
2005
2006
Single Coverage
HMO
16%
14%
18%
16%
17%
16%
16%
15%
PPO
13
14
13
16*
16
16
15
15
POS
15
14
13
16*
16
16
19
16
HDHP/SO
^
^
^
^
^
^
^
18
ALL PLANS
14%
14%
14%
16%
16%
16%
16%
16%
Family Coverage
HMO
28%
26%
29%
27%
26%
29%
26%
28%
PPO
26
27
26
29*
28
27
25
26
POS
28
26
25
28
28
28
31
30
HDHP/SO
^
^
^
^
^
^
^
25
ALL PLANS
27%
26%
26%
28%
27%
28%
26%
27%
*
Estimate is statistically different from estimate for the previous year shown at p<.05.
^
Information was not obtained for HDHP/SOs prior to 2006.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.15: Average Percentage of Premium Paid by Firm for Covered Workers, by Plan Type and Region, 2006
Single Coverage
Family Coverage
HMO
Northeast
81%*
77%*
Midwest
85
80*
South
85
69
West
88*
68
ALL REGIONS
85%
72%
PPO
Northeast
82%
78%*
Midwest
85
78*
South
83
67*
West
90*
77
ALL REGIONS
85%
74%
POS
Northeast
83%
74%
Midwest
86
77*
South
83
65*
West
86
69
ALL REGIONS
84%
70%
HDHP/SO
Northeast
88%
77%
Midwest
80
79
South
79
70
West
NSD
NSD
ALL REGIONS
83%
75%
ALL PLANS
Northeast
82%*
77%*
Midwest
85
78*
South
83*
67*
West
89*
73
ALL REGIONS
84%
73%
*
Estimate is statistically different within plan type from estimate for all other firms not in the indicated region at p<.05.
NSD: Not Sufficient Data.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
Error in element (see logs)
Exhibit 6.16: Average Percentage of Premium Paid by Firm for Covered Workers, by Plan Type and Industry, 2006
Single Coverage
Family Coverage
HMO
Agriculture/Mining/Construction
NSD
NSD
Manufacturing
81*
76
Transportation/Communications/Utilities
86
73
Wholesale
80*
72
Retail
82
64
Finance
83
69
Service
86
69
State/Local Government
90*
83*
Health Care
84
73
ALL INDUSTRIES
85%
72%
PPO
Agriculture/Mining/Construction
83%
71%
Manufacturing
82*
79*
Transportation/Communications/Utilities
86
79
Wholesale
83
76
Retail
80*
68*
Finance
86
76
Service
83
69*
State/Local Government
94*
82*
Health Care
88*
78
ALL INDUSTRIES
85%
74%
POS
Agriculture/Mining/Construction
NSD
NSD
Manufacturing
84
76*
Transportation/Communications/Utilities
NSD
NSD
Wholesale
NSD
NSD
Retail
NSD
NSD
Finance
NSD
NSD
Service
86
72
State/Local Government
89
73
Health Care
82
67
ALL INDUSTRIES
84%
70%
HDHP/SO
Agriculture/Mining/Construction
NSD
NSD
Manufacturing
79
77
Transportation/Communications/Utilities
NSD
NSD
Wholesale
NSD
NSD
Retail
NSD
NSD
Finance
NSD
NSD
Service
82
81
State/Local Government
NSD
NSD
Health Care
NSD
NSD
ALL INDUSTRIES
83%
75%
ALL PLANS
Agriculture/Mining/Construction
84%
67%
Manufacturing
82*
78*
Transportation/Communications/Utilities
85
77*
Wholesale
83
74
Retail
79*
66*
Finance
85
74
Service
84
70*
State/Local Government
91*
80*
Health Care
87
76
ALL INDUSTRIES
84%
73%
*
Estimate is statistically different within plan type from estimate for all other firms not in the indicated industry at p<.05.
NSD: Not Sufficient Data.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2006.
For more information regarding survey methodology, click here to view the Survey Design and Methods section.
