Selected SLC Research

Policy Analysis | November 3, 2014

What percentage of SLC member state employee health insurance premiums is contributed by the employer and employee?

The Pew Charitable Trust reports that between 1992 and 2012, the cost of insuring employees and their dependents doubled. To account for these rising costs, many states have had to reevaluate employee health benefits. The result has been a reduction in services provided, an increase in employee out-of-pocket expenses, or a combination of the two. The State Employee Health Plan Spending report, published by PEW in August 2014, represents one of the first times that state employee health plan data has been analyzed to offer some level of state-by-state comparison.

The following table shows how the SLC states compared on employee and employer contribution percentages in 2013. Each percentage represents the average contribution rate across all tiers of state health insurance plans. While most SLC states had a four-tier health plan structure in 2013, some state plans were divided into as few as two or as many as six tiers. The employer premium numbers represent the average percent of the total premium state employers contributed across all employee plans and all tiers in 2013.

SLC Member States’ 2013 Employee and Employer Premium Contributions

(click on headers to sort by column)

State/Region Average Premium Contribution ‐ Employee Only Average Premium Contribution ‐ Employee + Dependents Average Employer Premium Contribution

(All Plans)

Alabama 22% 26% 74%
Arkansas 21% 32% 72%
Florida 9% 14% 87%
Georgia 24% 29% 73%
Kentucky 15% 29% 76%
Louisiana 25% 37% 67%
Mississippi 9% 51% 77%
Missouri 17% 23% 78%
North Carolina 3% 51% 62%
Oklahoma * 0% 0% 125%
South Carolina 24% 28% 73%
Tennessee 20% 19% 81%
Texas 0% 27% 83%
Virginia 11% 13% 88%
West Virginia 22% 30% 71%
US 13% 20% 84%

* Please see footnotes to Table C-2 on page 40 of the State Employee Health Plan Spending report for an explanation of Oklahoma's employer premium contribution.

Source: PEW Charitable Trust, “State Employee Health Plan Spending,” August 2014