Why do employers continue to pay for health insurance?

[riderinthestorm]

7. I don't think that's necessarily true. Most employers pay a percentage of the premium

50% at the last place I worked but it can vary. We pay 50% and our average cost per employee is $3500 each

If you think about much you pay in premiums, and that's roughly half, and for some companies they're subsidizing an even greater percent, then you have the final tally for what it costs the company annually to keep health insurance going for their employees.

The penalty is $3000/year per employee. For me personally, and I know virtually every business in the US is making this calculation right now, I will save money by simply paying the penalty. I can stop offering it, negotiating it, hassling with it. I can be done with it and save the money. For big companies with designated administrators they can eliminate those positions as well, which are usually high paying jobs.

Morally I can walk away as well since I know my employees can and will be able to find it elsewhere.


(FWIW, we won't drop it because my husband has a serious PEC and we can afford it for now.)