Employee Share of Premium

Definition

Percentage of average employee contribution to family premiums for employer-based health insurance, 2011.

Description

The majority of Americans receive health care coverage through their employers. However, employees must still share the burden of paying for that coverage through health care premiums. This measure describes the portion of the cost of family health care premium that are paid for by employees. As the cost of providing health care rises, many employers (especially small employers) must shift a greater share of the premium costs to employees. In fact, research from the Kaiser Family Foundation found that between 1998 and 2008, the cost of health insurance premiums in employer-sponsored health insurance programs rose almost four times as much as wages, an increase of 119% compared to 34%, respectively. As the cost of premiums increase, more employees may find it harder to continue to pay for coverage.

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Employee Share of Premium

Source

Medical Expenditure Panel Survey (MEPS) - Insurance Component, Tables II.D.1, II.D.2, II.D.3. Rockville, MD: Agency for Healthcare Research and Quality, Center for Financing, Access, and Cost Trends, 2011. Data provided by the Kaiser Family Foundation, statehealthfacts.org.