GROUP HEALTH INSURANCE: HOW MUCH DOES IT REALLY COST?

Group health insurance can seem out of reach, but the average cost of group health insurance is often more manageable for Washington employers than expected. Many businesses assume coverage is an all-or-nothing expense, but that misconception can limit better options. In reality, flexible and cost-effective strategies exist for companies of all sizes. This guide explains what influences group health insurance costs, including location, employee demographics, plan type, and industry risk. It also breaks down average costs by company size, outlines employer versus employee contributions, and highlights practical ways to control premiums through smart plan design. Use this overview to set a realistic budget and build competitive benefits.

Key Takeaways

• Understand What Shapes Your Premium: Your final cost isn’t arbitrary; it’s a custom calculation based on your team’s average age, your Washington location, and the level of coverage you choose, giving you multiple factors that influence the price.
• Use Strategic Plan Design to Manage Your Budget: You can directly control costs by finding the right balance between monthly premiums and employee out-of-pocket expenses, such as pairing a lower-premium HDHP with a tax-advantaged Health Savings Account (HSA).
• Treat Health Insurance as a Strategic Investment: Offering a quality benefits package is a tax-deductible business expense that serves as a powerful tool to attract and retain top talent, leading to a healthier, more productive, and more loyal team.

What Is the Average Cost of Group Health Insurance?

Let’s talk numbers. When you’re considering health insurance, the first question is almost always, “What’s this going to cost?” The total premium is influenced by many factors, but looking at current averages gives you a solid baseline for planning. Understanding these figures is the first step toward building a benefits package that works for your budget and your team. Here’s a breakdown of the typical costs for individual and family plans so you can see where your business might stand.

Average Cost of Group Health Insurance for Single Employees

For a single employee, the average annual cost of group health insurance is around $8,951, which breaks down to about $746 per month. This figure represents the total premium paid to the insurance carrier to keep the plan active. It’s important to remember this cost is usually shared between you and your employee. While it’s a significant line item, offering this benefit is a powerful way to attract and retain talent. The right plan for your small group can make this investment a strategic advantage.

Average Cost of Group Health Insurance for Family Coverage

When an employee needs to cover their family, the cost naturally goes up. The average annual premium for family coverage is about $25,572, or roughly $2,131 per month. This higher price reflects the reality of insuring multiple people under one policy. For many employees, access to affordable family coverage is a top priority when choosing an employer. Finding a plan that balances comprehensive care with manageable costs is key. A well-designed benefits strategy for large groups can make all the difference, ensuring your team feels supported.

Monthly Group Health Insurance Costs (Employer vs. Employee)

So, how do these monthly premiums—$746 for single and $2,131 for family—get paid? It’s a partnership. On average, employees contribute about 16% of the premium for their own coverage and around 25% for a family plan, with the employer covering the rest. These percentages are just averages, of course. Many businesses work with a broker to create a contribution strategy that fits their financial goals. Understanding this cost breakdown helps you budget accurately and communicate the value of your benefits package clearly to your team.

How Much Should Your Business Pay for Group Health Insurance?

Deciding how much your company will contribute to employee health insurance premiums is a huge piece of the puzzle when you’re building a benefits package. It’s a balancing act between what your budget can handle and what will make your team feel valued. While there’s no magic number, understanding the common benchmarks can give you a solid starting point. This decision directly impacts how competitive your compensation package is and how your employees perceive their benefits, which is why it’s worth getting right.

Typical employer contribution percentages

Nationally, employers carry most of the weight. On average, companies cover about 83% of the premium for single employees and 73% for family plans. This shows a significant investment in your team’s health and well-being, which is a powerful message to send. Of course, these percentages are just a guide. You have the flexibility to design a contribution strategy that aligns with your financial goals and company culture. Thinking through these numbers is a key part of getting started with a group plan that truly works for your business.

What employees can expect to pay

So, if the company is covering a large portion, what does that leave for the employee? Based on those national averages, an employee can expect to contribute around $132 per month for their own coverage and about $625 for a family plan. This is the amount that’s typically deducted from their paycheck. Keeping this contribution affordable is crucial for making sure your team actually uses and appreciates the health plan you provide. If the employee’s share is too high, the benefit can feel more like a burden. That’s why we help businesses structure plans that are both sustainable for the company and genuinely valuable for your people.

How contributions differ between small and large companies

Your company’s size can play a role in your contribution strategy. Interestingly, small businesses are often more generous with single employees—about 30% of them cover the full premium for individual plans, compared to just 6% of large firms. This can be a smart way for small groups to stand out and compete for top talent. On the flip side, employees at smaller companies sometimes pay a larger share for family plans. For large groups, the economies of scale can allow for different cost-sharing structures. There’s flexibility at every size, and the right approach always comes down to your unique business goals and team.

What Factors Drives the Cost of Group Health Insurance?

When you get a quote for group health insurance, the final number isn’t pulled out of thin air. It’s a carefully calculated figure based on a handful of key details about your business and your team. Insurance carriers look at these factors to predict how much medical care your group might need in the coming year. Understanding what goes into this calculation helps you see the full picture and gives you more control over the plan you ultimately choose. Think of it less as a fixed price tag and more as a customized proposal built just for your company. Let’s walk through the main components that shape your health insurance premiums.

Your company’s size and team makeup

Group health insurance is built on the idea of shared risk. By pooling a group of people together, the potential cost of expensive medical care for one person is spread across the entire group. This is why group plans often provide more comprehensive coverage at a lower cost than individual plans. The size of your company plays a role here; whether you’re a small group of five or a larger company of 100, the number of employees enrolled in the plan directly influences the risk pool. A larger pool can sometimes lead to more stable and predictable rates over time.

Employee age and health demographics

The average age of your employees is one of the most significant factors in determining your rates. Statistically, younger employees tend to use fewer medical services, which translates to lower insurance costs. Conversely, an older workforce may have more complex health needs, leading to higher premiums. Insurance carriers use actuarial data based on age to predict the group’s potential healthcare spending. It’s not about any single employee’s health but rather the overall demographic profile of your team. This is a standard part of the underwriting process for all group health plans.

How your Washington location affects pricing

Where your business operates in Washington state has a direct impact on your insurance premiums. Healthcare costs aren’t uniform across the state; services in major metropolitan areas like Seattle or Bellevue are often more expensive than in smaller cities or rural communities. Insurance carriers divide the state into different rating areas, each with its own baseline costs. This is tied to the local price of medical care and the negotiated rates with doctors and hospitals in that area. When choosing a plan, it’s also important to check that the provider network includes convenient options for your employees.

The plan type and level of coverage you choose

The kind of plan you offer is a major driver of your monthly premium. A plan with a lower deductible and smaller co-pays will naturally cost more than a high-deductible health plan (HDHP). Plans like PPOs, which offer more flexibility in choosing doctors, typically come with higher premiums. The key is to find the right balance for your budget and your team’s needs. You’ll want to weigh how much you can contribute to monthly premiums against how much you want employees to pay out-of-pocket when they need care. This is where strategic plan design makes all the difference.

Your industry’s specific risk factors

Finally, your industry can influence your rates. Insurance carriers assess the level of occupational risk associated with your line of work. For example, a construction company with employees performing manual labor will have a different risk profile than a marketing agency where employees work at desks. This factor is just one piece of the puzzle, but it helps carriers create a complete picture of your group’s potential healthcare needs. We work with businesses across all sectors, from tech startups to established non-profits, to find plans that make sense for their specific industry.

Group Health Insurance Costs by Company Size

Company size is one of the biggest factors affecting group health insurance costs. The number of employees you have influences not only your monthly premiums, but also how your rates are calculated and which plan options are available. Small groups and large groups are priced under different rules, which can impact both cost stability and flexibility. As your business grows and crosses certain employee thresholds, new pricing models and plan structures become available. Understanding how group health insurance costs change by company size helps you choose coverage that fits your budget while still meeting the needs of your team.

Understanding small group rates (2-50 employees)

If you have between two and 50 employees, you fall into the small group market. In Washington, rates for this category are community-rated. This means insurers set prices based on the overall claims data for a specific geographic area, not just on your team’s health history. While this protects you from sharp increases if one employee has a high-cost medical issue, it offers less flexibility. Interestingly, while the per-person cost for single coverage can sometimes be higher for small businesses, they are more likely to cover the full premium. For family plans, however, employees at smaller companies often end up paying a larger share of the cost.

A look at large group rates (51+ employees)

Once your company grows to 51 or more employees, you enter the large group market, and the game changes. Here, the risk is spread across a much larger pool of people, which often leads to more competitive pricing and a wider variety of plan options. Insurers typically use your company’s specific claims history—a practice known as experience rating—to calculate your premiums. This gives you more control over your costs. If your team is generally healthy, you could see lower rates. Employers in this category typically cover a significant portion of the premium, often between 50% and 75%, making comprehensive coverage more accessible for employees and their families.

Self-funded vs. fully insured plan differences

Beyond your company’s size, the way your plan is funded also plays a huge role in your costs. Most small businesses start with a fully insured plan, where you pay a fixed monthly premium to an insurance carrier who then handles all the claims. It’s predictable, but you’re also paying for the carrier’s administrative costs and profit margins. Alternatively, self-funded or level-funded plans offer a different approach. With these models, you pay for your employees’ claims directly, which can lead to average savings of 8–10%. To protect against unexpectedly large claims, you also purchase stop-loss insurance, giving you more control over plan design and a clearer picture of where your healthcare dollars are going.

How Plan Type Affects Group Health Insurance Costs?

When you’re building a benefits package, the type of health plan you choose is one of the biggest decisions you’ll make. It directly influences not only your company’s costs but also your employees’ access to care and their out-of-pocket expenses. The two most common options you’ll encounter are HMOs and PPOs, but they aren’t your only choices. Each plan type comes with a different structure and price tag, creating a trade-off between flexibility and cost. For many Washington businesses, this is where things can feel complicated. Do you prioritize lower monthly payments or broader access to doctors?

Understanding these differences is the first step toward designing a plan that fits your budget and truly serves your team. It’s not about finding the cheapest option, but about finding the smartest one. A plan with lower monthly premiums might look appealing at first, but if it comes with a narrow network or high out-of-pocket costs, it may not be the right fit for your employees. The goal is to find a sustainable solution that provides real value, helping you attract and retain the talent that makes your business thrive. Let’s break down the main plan types so you can see how they stack up.

Comparing cost differences between HMO vs. PPO

The main distinction between an HMO (Health Maintenance Organization) and a PPO (Preferred Provider Organization) comes down to choice versus cost. HMO plans are typically more budget-friendly, with lower monthly premiums and out-of-pocket costs. The trade-off is that they operate within a specific network of doctors and hospitals. To see a specialist, an employee usually needs a referral from their primary care physician (PCP).

PPO plans, on the other hand, offer much more flexibility. Employees can see any doctor they choose, both in and out of network, without a referral. This freedom comes at a price—PPOs generally have higher monthly premiums. While they can see an out-of-network provider, they’ll pay a higher portion of the bill. You can use a provider search tool to see which doctors are in-network for different plans.

The role of high-deductible health plans (HDHPs)

Another popular option, especially for businesses mindful of monthly costs, is the High-Deductible Health Plan (HDHP). As the name suggests, these plans have a higher deductible that an employee must meet before the insurance begins to cover most expenses. In exchange, HDHPs have significantly lower monthly premiums, which can be a major advantage for your company’s budget.

The real power of an HDHP is that it can be paired with a Health Savings Account (HSA). An HSA allows both you and your employees to contribute pre-tax dollars to an account that can be used for medical expenses. This creates a valuable, tax-advantaged savings tool for your team. HDHPs are often a great fit for younger, healthier groups who don’t anticipate frequent medical visits but want protection against major health events.

Finding the right balance between premiums and coverage

So, how do you choose? The right plan depends entirely on your team’s unique needs. If your employees are generally healthy and don’t expect many doctor visits, a plan with lower monthly premiums and a higher deductible, like an HDHP, might be a perfect fit. It keeps fixed costs low while still providing a safety net.

However, if your team includes employees with ongoing health conditions or growing families who anticipate more frequent medical care, a plan with a higher premium but lower out-of-pocket costs might save them money in the long run. The key is to strike a balance that aligns with your budget and supports your employees’ well-being. When you’re ready to explore your options, getting started with an expert can help you find that perfect fit.

Are Health Insurance Costs Increasing?

If you feel like you’re bracing for impact every time your health insurance renewal comes up, you’re not alone. The constant rise in costs is one of the biggest challenges for businesses, making it difficult to budget and plan for the future. But understanding why these costs are climbing and what you can do about it can help you feel more in control.

It’s not just a feeling—the numbers show a clear upward trend that has consistently outpaced both inflation and wage growth. This pattern is driven by a mix of factors, from the overall health of your team to the specific type of plan you choose. The good news is that you aren’t powerless. By understanding these trends and planning strategically, you can build a sustainable benefits strategy that works for your company and your employees. Let’s break down where we’ve been, what’s driving costs, and how you can prepare for what’s next.

A brief history of cost increases

The rising cost of health insurance isn’t a new headache for business owners, but the pace has certainly picked up. To put it in perspective, family premiums have jumped a staggering 60% since 2015. This isn’t just a minor adjustment; it’s a significant financial pressure that has consistently grown faster than both wages and general inflation. For many companies, this means the portion of the budget dedicated to health benefits gets bigger every year, often without a corresponding increase in the quality of care. This history of sharp increases underscores why a passive approach to benefits is no longer an option. Proactive, strategic planning is essential to manage these escalating expenses.

Key factors pushing costs up

So, what’s behind these relentless price hikes? It’s not one single thing but a combination of factors that insurers use to calculate your risk and set your premiums. The size of your company and the general age and health of your employees play a huge role. A younger, healthier team will typically have lower costs than an older group with more chronic health conditions. Your geographic location within Washington also matters, as healthcare costs vary by region. Of course, the type of coverage you offer is a major driver—richer plans with lower deductibles cost more. Finally, your company’s claims history gives insurers a picture of how much your team is likely to use their health benefits in the future.

How to plan for future premium changes

While you can’t control every factor that influences your rates, you can absolutely take steps to manage future costs. The most effective strategy is to work with an expert who can help you explore all your options. This might involve adjusting your plan design, like introducing a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA). Implementing wellness programs can also make a difference by encouraging healthier habits and potentially reducing long-term claims. For some businesses, exploring self-funded insurance options offers more control and transparency. The key is to review your plan annually and not just accept the standard renewal. Partnering with an experienced broker gives you an advocate who can negotiate with insurers and find creative solutions tailored to your budget and your team’s needs.

3 Common Myths About Group Health Insurance Costs, Debunked

When it comes to group health insurance, it’s easy to get tangled up in assumptions about cost and value. These misconceptions often feel like facts, creating roadblocks that can keep you from exploring options that could be a game-changer for your business and your team. Many Washington business owners we talk to feel stuck, believing they have to choose between breaking the bank and offering a plan that doesn’t really help anyone. The truth is, the group health insurance landscape is more flexible and accessible than you might think, but you have to look past the headlines and the hearsay.

These myths are persistent because, on the surface, they seem logical. But they oversimplify a complex topic and ignore the strategic advantages that a well-designed benefits package can provide. Thinking that any plan is too expensive, that the cheapest option is sufficient, or that employees only care about salary can lead to poor decisions that impact your ability to hire great people, keep them motivated, and build a resilient company culture. Let’s clear the air and tackle three of the most common myths we hear, so you can move forward with clarity and confidence.

Myth: “It’s too expensive for my small business.”

This is the number one concern for most small business owners, and it’s completely understandable. But the reality is, offering health insurance is more accessible than you might think. While salary is important, employees consistently rank health coverage as a top workplace benefit, and not offering it can put you at a major disadvantage when competing for talent. Plus, innovative plan designs like level-funded or self-funded options can offer significant savings for small groups by giving you more control over your plan and cutting out unnecessary carrier margins. The key is finding a strategy that fits your budget, not assuming you’re priced out of the market entirely.

Myth: “The cheapest plan is always the best deal.”

Choosing the plan with the lowest monthly premium can feel like a smart financial move, but it often backfires. A low-premium plan might come with a sky-high deductible, a very limited network of doctors, or minimal coverage that leaves your employees with hefty out-of-pocket costs when they actually need care. This can lead to frustration and a feeling that their benefits aren’t truly beneficial. The “best deal” is a plan that balances affordable premiums with meaningful coverage. This is where expert guidance becomes invaluable—we can help you see the full picture and find a plan that provides real value for both your company and your team.

Myth: “My team would rather have a higher salary.”

While everyone appreciates a bigger paycheck, data consistently shows that robust benefits are a major priority for employees. In fact, comprehensive health and wellness programs are among the most requested forms of support, right behind flexible work arrangements. Viewing health insurance as an “extra” is a mistake; it’s a core part of a competitive compensation package that shows your team you’re invested in their long-term well-being. This fosters loyalty and can be far more impactful than a small salary increase. When you’re ready to build a benefits package that truly resonates with your employees, we can help you get started.

Why Offering Health Insurance is a Smart Investment

When you’re looking at your budget, group health insurance can feel like just another major expense. But thinking of it purely as a cost misses the bigger picture. A well-designed benefits package is one of the most powerful tools you have for building a strong, resilient company here in Washington. It’s a strategic investment that directly impacts your ability to hire great people, improve your bottom line, and create a workplace where your team can do their best work. It’s not just about covering sick days; it’s about building a foundation for long-term success.

Attract and keep top talent

In a competitive job market, a good salary is just the starting point. Top candidates are looking for a company that invests in their well-being, and a strong health insurance plan is a clear signal of that commitment. Offering comprehensive benefits makes your company far more appealing to job seekers and helps you stand out. It’s also a critical part of keeping your current team happy and engaged. When your employees feel valued and secure, they’re more likely to stay for the long haul, reducing turnover and its associated costs. We can help you build a benefits package that shows your team you care.

The tax advantages for your business

Beyond attracting talent, offering health insurance comes with significant financial perks for your business. The money you pay toward employee health insurance premiums is generally tax-deductible as a business expense. This can lower your company’s taxable income, effectively reducing the net cost of providing benefits. It’s a smart financial strategy that allows you to invest in your team’s health while also benefiting your bottom line. Think of it less as an expense and more as a pre-tax investment in your company’s most valuable asset: your people. When you’re ready to explore the numbers, we can help you understand the full financial picture.

Support a healthier, more productive team

A healthy team is a productive team. When your employees have reliable health coverage, they’re more likely to seek preventative care, which can stop minor health issues from becoming major problems. They also experience less stress about potential medical bills, freeing them up to focus on their work. This leads to fewer sick days, higher morale, and a more engaged workforce. Employees who know their health needs are covered are simply in a better position to contribute their best efforts every day. By providing access to quality care, you’re not just supporting your employees’ well-being—you’re fostering a culture of health that directly contributes to your company’s success.

Smart Strategies for Washington Businesses to Control Costs

Feeling like your health insurance premiums are a runaway train is frustrating, but you have more control than you think. Managing costs isn’t about slashing benefits or always picking the plan with the lowest price tag. It’s about being intentional and strategic. By focusing on the right areas, you can build a benefits package that supports your team and your budget for the long haul. Let’s look at three practical strategies that Washington businesses can use to get a handle on their health insurance expenses.

Partner with an experienced local broker

Trying to sort through the complexities of group health insurance on your own is a recipe for overspending. This is where a true partner makes all the difference. Working with an experienced local broker gives you an advocate who understands the nuances of the Washington market. They do more than just pull quotes; they get to know your business, your team, and your financial goals to find custom options that fit. Think of them as a dedicated member of your team who provides expert, unbiased advice and handles the heavy lifting, so you can focus on running your business.

Design a strategic and sustainable plan

The best benefits plan is one that’s built to last. A sustainable approach involves looking beyond this year’s renewal and creating a multi-year strategy. This might mean adjusting plan designs, such as incorporating higher deductibles paired with a Health Savings Account (HSA), to lower monthly premiums. It could also involve exploring different funding models as your company grows. The goal is to find the right balance between comprehensive coverage and predictable costs. A well-designed plan provides real value to your employees without creating financial strain on your business, ensuring it remains a competitive advantage for years to come.

Implement wellness programs that work

One of the most effective long-term strategies for managing health care costs is to invest in your team’s well-being. Proactive wellness programs that offer resources like health assessments, mental health support, and chronic disease management can help your employees stay healthier. This isn’t just a “nice-to-have” perk; it has a real financial impact. Studies show these programs can return between $1.50 and $3.00 for every dollar spent by reducing long-term health claims. By supporting your team’s health, you foster a more productive workplace and create a positive culture while also managing future insurance costs. 

What Washington Employers Are Actually Paying and How to Pay Less

The average cost of group health insurance in Washington State varies significantly based on group size, employee demographics, industry, and your funding strategy. Many employers are unknowingly overpaying simply because their broker only ever presented one option: a standard fully insured plan.

WHIA’s market analysis regularly uncovers 15 to 30% in savings for Washington businesses by transitioning to level-funded or self-funded models. We also evaluate transparent pharmacy benefit managers (PBMs) and reference-based pricing, strategies most brokers never put on the table.

Before accepting your next renewal increase, request a free benchmark report. We’ll show you exactly what peer businesses are paying, what funding strategies they’re using, and where your current plan stands. No obligation, just the clarity you deserve.

Your Checklist for Choosing the Right Health Plan

Choosing a health plan can feel like a huge task, but breaking it down into a few key steps makes it much more manageable. It’s about finding that sweet spot between a plan your business can afford and benefits your team will actually value. Think of this as your simple, straightforward checklist to guide you through the process and help you make a confident decision for your company.

Assess your budget and your team’s needs

Let’s start with the numbers. You need a clear picture of what your business can contribute. For context, the average annual cost for group health insurance is around $8,951 for single coverage and $25,572 for family coverage—and those figures jumped 7% last year. Once you figure out what you can afford, focus on your team. Are they mostly young singles, or do you have employees with families? Understanding their priorities, whether it’s low monthly payments or comprehensive coverage for dependents, is key to choosing a plan that actually works for them.

Compare plan options and doctor networks

Not all health plans are created equal. You’ll see options like PPOs, which offer more flexibility but usually come with higher premiums. On the other hand, High-Deductible Health Plans (HDHPs) have lower monthly costs, but employees pay more out-of-pocket for care. Beyond the plan type, the doctor network is a huge deal. The last thing you want is for an employee to find out their trusted family doctor isn’t covered. Before you commit, it’s essential to check which doctors are in-network to ensure your team has access to the care they need.

Know your enrollment requirements and key deadlines

Once you’ve narrowed down your options, there are a few logistical hurdles. Most insurance carriers require that at least 70% of your eligible employees enroll in the plan. If you don’t hit that number, you might not be able to offer the plan at all, so clear communication is key. You also need to be on top of deadlines. Open enrollment happens during a specific window, and missing it can mean waiting another year. Understanding these requirements and timelines ahead of time will save you a lot of headaches and ensure a smooth rollout for everyone.

Related Articles

• Best Health Insurance for Small Business Owners: A Guide
• FAQ – Washington Health Insurance Agency

Frequently Asked Questions

My business is small. Does that automatically mean my insurance rates will be higher than a large company’s? Not necessarily. While large companies can sometimes get lower rates due to the size of their employee pool, small businesses in Washington have a key protection. Your rates are “community-rated,” which means they’re based on the general risk of everyone in your geographic area, not just the health of your specific team. This prevents your premiums from spiking if one employee has a high-cost medical condition. The calculation is different, but a strategic plan design can make coverage very affordable for small groups.

How do I choose between a plan with a low monthly premium and one with better coverage? This is the classic balancing act. A plan with a low monthly premium might seem like the best deal for your budget, but it often comes with a high deductible or limited network. This can leave your employees with significant out-of-pocket costs when they need care, making the benefit feel less valuable. The best approach is to think about your team’s needs. A younger, healthier group might do well with a high-deductible plan, while a team with families might need more robust coverage. It’s about finding a plan that provides real, usable value, not just the lowest price tag.

What exactly is a Health Savings Account (HSA), and is it a good option for my team? An HSA is a tax-advantaged savings account that is paired with a high-deductible health plan (HDHP). Think of it as a personal savings account specifically for medical expenses. Both you and your employees can contribute money to it before taxes are taken out, which lowers everyone’s taxable income. The funds can be used for everything from doctor visits to prescriptions, and the money belongs to the employee forever, even if they leave the company. It’s a powerful tool that helps your team save for healthcare while keeping your monthly premiums low.

Are there legal rules about how much I have to contribute to my employees’ premiums? While there isn’t a single federal or state law that dictates a specific percentage you must contribute, most insurance carriers have their own minimum requirements, often asking employers to cover at least 50% of the employee-only premium. To stay competitive and attract talent, most businesses contribute much more than the minimum. The national averages—around 83% for single employees and 73% for families—are a great benchmark to aim for when designing your benefits package.

Besides the monthly premium, what other insurance costs should I be thinking about? The monthly premium is just one piece of the puzzle. To understand the full picture, you also need to consider the out-of-pocket costs your employees will face when they use their plan. These include the deductible, which is the amount they pay before insurance kicks in, as well as co-pays for doctor visits and coinsurance for more significant procedures. A plan that balances an affordable premium with manageable out-of-pocket costs is what makes a benefits package truly effective for your team.