How Much Do Group Insurance Premiums Cost?

According to a national survey of employee-sponsored health plans, HMO coverage at companies with fewer than 500 employees averaged $4,767 per worker in 2003.

Although insurance premiums

1. The scope of the plan. Premium costs are determined by prescription, hospitalization, chiropractic, mental health, alternative medicine, and other health care services covered by the plan.
2. The amount of co-pays and deductibles. Premiums are directly linked to employee co-pays and deductibles — the lower the co-pay, the higher the premium.
3. The doctors covered under the plan. Insurance premium costs depend on the number of and type of health care providers available under the plan.
4. The age of the participants. It's more expensive to insure older employees than younger employees. Breakdowns are usually in 10-year increments.
5. The cost of medical care in your area. If your area has expensive health care, expect higher premiums. Health care in major California cities, for example, is more expensive than in semirural areas or smaller towns.