What do employers have to pay?
Is Insurance Required?
There is no law requiring employers to offer employees or their dependents medical insurance (this will change in the coming years as the Obama Plan rolls out). If you do offer coverage, however, you will be subject to many rules and regulations.
Most insurers and health plans require employers to cover at least half of the premium cost for covered employees only. This requirement is meant to encourage more employees to join the plan, and prevent what's known as "adverse selection" where only those prone to sickness are motivated to sign up, creating a much higher-risk group for the insurer. Some employers choose to pay all of the premium; others require employees to pay a portion (up to 50 percent).
On the other hand, employers have no obligation to pay for premiums for dependents. In other words, employers may contribute towards premiums for dependents, but are free to require employees to pay for the full premium cost for covered dependents.
Besides offering access to affordable health services, group coverage also helps businesses in other ways such as employee retention and tax benefits. The reality is that there are plenty of compelling reasons to consider buying health coverage for your business. Below, we outline the main ways that purchasing a group policy can benefit you, your business, and your employees.