In a small employer medical plan, who typically pays the premiums?

In a small employer medical plan, it is typically the employer who pays the premiums. This practice is common because small employers often offer health insurance as part of the benefits package to attract and retain employees. The employer usually covers a portion of the premium costs, though they may require employees to contribute a share as well.

This arrangement incentivizes employees to enroll in the offered health plan, thus promoting better health outcomes within the workforce. The premiums are a crucial part of funding the insurance coverage, enabling employees access to necessary medical care and reducing out-of-pocket expenses for them.

While employees may contribute to the cost of their premiums through payroll deductions, the primary responsibility for premium payments lies with the employer in the context of small group health insurance plans.