How are Group Health Insurance Premiums Calculated?
Health insurance premiums are the monthly costs of health insurance. For plans that cover small groups such a small businesses, premiums are calculated based on each employee enrolled and any spouses and dependents covered by the plan. All these individual premiums are then added together for the group premium. This premium is partially covered by the employer and then partially covered by each employee. The amount that each employee has to pay is based on guidelines by the Affordable Care Act.