What is Health Insurance Premium?

Health insurance premiums are the monthly cost of your medical coverage, shared between you and your employer. Most employer-sponsored plans deduct your share pre-tax through a Section 125 cafeteria plan, which reduces your taxable income. The average employee contribution for single coverage is about $130/month; family coverage averages about $550/month. Common codes on your paystub include MED, DENTAL, VISION, or the specific plan name.