How are premiums set for employers?

In addition to the benefits selected, the amount a small employer (50 or fewer employees) pays for coverage depends on:

  • The average age of employees/dependents 
  • The benefits the employer selects 
  • Location in the state 
  • The number of family members on the plan 
  • Tobacco use by employees

Large employers negotiate rates directly with the insurance company; these plans' rates are not subject to state regulation.

Small employers who have received coverage through an association may find plans and costs changing as a result of new rules.

Talk to an insurance expert