Employer Health Insurance Cost
Employers spend about $3.41 per hour worked on health insurance for private-industry workers (BLS, March 2026) — roughly 7.3% of total compensation and about $7,100 a year for a full-time employee.
The average employer health-insurance cost is about $3.41 per hour worked (~7.3% of total compensation), or roughly $7,100/year for a full-time worker (BLS).
- Per hour worked$3.41
- Share of total comp~7.3%
- Approx. per year (FT)~$7,100
- PopulationPrivate industry
Source: U.S. Bureau of Labor Statistics — Employer Costs for Employee Compensation, March 2026
Employer cost, not total premium
This is the employer’s share of health insurance cost per hour worked, from the BLS ECEC survey. It excludes the portion employees pay through payroll deductions, so the full premium is higher. It is an average across firms that do and do not offer coverage, so employers that provide generous plans spend well above $3.41/hour.
Employer health insurance cost in context
| Measure | Value |
|---|---|
| Cost per hour worked | $3.41 |
| Share of total compensation | ~7.3% |
| Approx. annual (2,080 hrs) | ~$7,100 |
| Total employer cost/hour (all comp) | $46.60 |
BLS Employer Costs for Employee Compensation, private industry, March 2026. Annual figure assumes full-time hours and is a NumberBench calculation.
Frequently asked questions
How much do employers pay for health insurance?
About $3.41 per hour worked for private-industry workers on average — roughly $7,100 a year for a full-time employee (BLS).
Is that the full premium?
No. It is the employer’s share only; employees pay an additional portion through payroll deductions, so the total premium is higher.
What share of compensation is health insurance?
About 7.3% of total employer compensation cost for private-industry workers.
Why is my employer’s cost higher?
The figure is an average that includes firms offering no coverage; employers with rich plans or older workforces spend more.
Sources & methodology
Sources: U.S. Bureau of Labor Statistics — Employer Costs for Employee Compensation, March 2026.
Values are from the BLS ECEC release (private industry, March 2026). The annual estimate assumes 2,080 full-time hours and is a NumberBench calculation.
Last checked July 2026 · Refreshed quarterly with the BLS ECEC release.