Health insurance is one of the largest benefits an employer provides — but who really pays for it? On average, employers cover roughly 79% of the total premium for group health insurance, leaving employees with 21%, but that split varies by state.
| Topic | Key Insight |
|---|---|
| State Cost Variance | Group health insurance costs range from $7,449 in Nevada to $9,589 in New York. |
| Employer Contribution | Employers typically cover 75–89% of total premiums. |
| Employee Cost vs Premium | Employee costs range from a low of $799 in Hawaii to a high of $2,077 in Massachusetts—a staggering 160% annual difference for the same type of coverage. |
| Lower-Cost States | In states like OK, AR, and MS, employees often pay a larger share of the total. |
Ozzy's takeaways
- Group health insurance costs differ by state, from about $7,449 in Nevada to $9,589 in New York.
- Employers usually pay 75–89% of the total premium, depending on the state.
- Employee costs range from a low of $799 in Hawaii to a high of $2,077 in Massachusetts—a staggering 160% annual difference for the same type of coverage.
- In some lower-cost states like Oklahoma, Arkansas, and Mississippi, employees pay a bigger share of the total.
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Note: Figures represent estimated average premiums for single coverage. Rates vary significantly by employer size, specific plan type, and individual circumstances. Data is informational and does not represent customized quotes.
Source: KFF · Employer Health Benefits Survey 2024
Which states have the highest and the lowest group health insurance costs?
The average cost of employer-based single health coverage in 2024 varies widely across the U.S. Some states exceed $9,000 per year, while others stay closer to $7,500.
Below, we break down where premiums are highest, and where they’re most affordable, and how much of the bill employers actually cover.
Top 10 states with the highest group health insurance annual cost
Location | Employee Contribution | Employee Contribution | Employer Contribution | Employer Contribution | Total Annual Premium |
|---|---|---|---|---|---|
New York | $1,953 | 20% | $7,636 | 80% | $9,589 |
Massachusetts | $2,077 | 22% | $7,335 | 78% | $9,412 |
Alaska | $1,910 | 20% | $7,416 | 80% | $9,326 |
Rhode Island | $1,973 | 21% | $7,331 | 79% | $9,304 |
Delaware | $1,806 | 20% | $7,334 | 80% | $9,140 |
New Jersey | $1,862 | 20% | $7,257 | 80% | $9,119 |
Florida | $1,779 | 20% | $7,237 | 80% | $9,016 |
California | $1,947 | 22% | $7,018 | 78% | $8,965 |
Wyoming | $1,697 | 19% | $7,266 | 81% | $8,963 |
Connecticut | $1,853 | 21% | $7,100 | 79% | $8,953 |
High-cost states tend to cluster in the Northeast and on the West Coast, where overall healthcare and living expenses are higher.
Even though total premiums are steep, with New York topping the list at $9,589 per year, employers in these states still pay around 78–81% of the total. This helps offset high costs for workers, keeping employee contributions relatively steady compared to the national average.
Top 10 states with the lowest group health insurance annual cost
Location | Employee Contribution | Employee Contribution | Employer Contribution | Employer Contribution | Total Annual Premium |
|---|---|---|---|---|---|
Nevada | $1,414 | 19% | $6,035 | 81% | $7,449 |
Hawaii | $799 | 11% | $6,705 | 89% | $7,504 |
Tennessee | $1,577 | 21% | $5,933 | 79% | $7,510 |
Idaho | $1,509 | 20% | $6,015 | 80% | $7,524 |
Arkansas | $1,744 | 23% | $5,789 | 77% | $7,533 |
Mississippi | $1,852 | 24% | $5,712 | 76% | $7,564 |
Iowa | $1,784 | 23% | $5,857 | 77% | $7,641 |
Oklahoma | $1,974 | 25% | $5,785 | 75% | $7,759 |
Utah | $1,513 | 19% | $6,248 | 81% | $7,761 |
Nebraska | $1,695 | 22% | $6,102 | 78% | $7,797 |
In these lower-cost states, total premiums range from about $7,449 in Nevada to $7,797 in Nebraska, roughly $1,500 to $2,000 below the highest-cost regions. Hawaii stands out with a total premium of $7,504, where employers cover 89% and employees pay $799. Nevada ($7,449) and Utah ($7,761) also have high employer contributions at 81%, while Tennessee ($7,510) and Idaho ($7,524) see employer shares around 79%–80%.
In contrast, in Oklahoma ($7,759), Arkansas ($7,533), Mississippi ($7,564), and Iowa ($7,641), employers contribute roughly 75–77% of the total premium. These differences reflect variations in state regulations, healthcare costs, and labor markets.
The $7,000 threshold: employer cost of coverage
While employees focus on their payroll deductions, businesses face a massive annual line item. On average, U.S. employers contribute $6,697 per employee for single coverage. In competitive or high-cost markets, this investment is significantly higher.
States with the highest employer cost burden:
New York: $7,636
Alaska: $7,416
Delaware: $7,334
Massachusetts: $7,335
Rhode Island: $7,331
In contrast, employers in states like Mississippi ($5,712) and Oklahoma ($5,785) pay significantly less. This reflects both lower regional healthcare costs and a regional trend where employers shift a larger percentage (up to 25%) of the total premium onto the worker.
The great divide in employee costs
The most striking finding in the 2024 data is the massive gap in what employees actually pay out-of-pocket. Those in Massachusetts ($2,077) face costs nearly 160% higher than their counterparts in Hawaii ($799).
While Massachusetts has higher overall healthcare costs, the real driver is the employer contribution percentage. Hawaii's unique labor laws mandate that employers cover a much larger share (89%), whereas Bay State employees are often responsible for a larger slice (22%) of an already expensive pie.
Bottom line
Health insurance costs for single coverage vary widely across the U.S., from around $7,449 in Nevada to around $9,589 in New York. While high-cost states often have higher premiums, generous employer contributions help keep employee out-of-pocket costs manageable.
Workers in states like Hawaii benefit from both lower total premiums and high employer contributions, while employees in states such as Oklahoma or Mississippi pay a larger share despite lower overall costs. Understanding these differences can help employees better evaluate their benefits and plan for healthcare expenses.
Group health insurance FAQ
How much does group health insurance cost?
The cost varies by state, plan type, and coverage level. For single coverage in 2024, total annual premiums range from about $7,449 in Nevada to $9,589 in New York, with employers covering 75–89% of the cost. Family coverage is higher, often more than double the single rate.
Is group health insurance worth it?
Yes. Group health insurance often offers lower premiums, better coverage, and employer contributions compared with individual plans. It also provides access to more providers and can include additional benefits like dental, vision, or wellness programs.
What is the average cost per month for health insurance?
For single coverage in employer-based plans, the average 2024 cost is about $8,486 per year, which is roughly $707 per month. Employees typically pay about $1,789 annually ($149/month), with employers covering the rest. Family plans cost more, often over $2,100 per month in total.
Is $200 a month expensive for health insurance?
It depends on the coverage and location. For single coverage in many states, employees pay $150–$200 per month on average. So $200/month is close to the higher end of typical employee contributions for single coverage, but still less than the full cost of the plan, which is often $700+ per month.
About the Author
Irena MartincevicIndustry Analyst
