In group health insurance, who typically pays the premium?

In group health insurance, the employer typically pays the premium, which is a fundamental aspect of how group insurance is structured. Group health insurance is often provided as an employee benefit, where an employer negotiates a group plan to cover a pool of individuals, such as employees and their dependents.

Since this type of insurance is designed to cater to a larger group, the risk is spread among many individuals, allowing employers to secure better rates compared to individual health insurance plans. Additionally, employers might cover the entire cost of the premium or partially share it with employees, making healthcare coverage more accessible and affordable for workers.

Other parties in the options do not predominantly hold this responsibility. The insured individual generally contributes to the premium through deductions from their salary but does not pay it directly. The government may provide health insurance (such as Medicare or Medicaid) but is not involved in the majority of employer-sponsored group plans. Insurance brokers facilitate the acquisition of insurance but do not pay premiums themselves.