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Employee Health Insurance Subscription Rates

31 August 2023

Nowadays, all employees are seeking a job that guarantees them a subscription to health insurance so that they can find refuge whenever they need medical insurance.

The biggest advantage of getting comprehensive medical insurance for work is the higher employee loyalty to the company; the more advantages you offer them, the better they stick to the job and the company, and other companies cannot offer it different benefits.

A common question that employees ask at the beginning is: What are the health insurance subscription rates for employees? What are the benefits of employee health insurance? Does the subject cost a large sum of money?

In the following article, we show you all the details about the prices of the employee health insurance subscription and answer all your questions about employee medical insurance.

What is employee health insurance?

Employee health insurance is a benefit provided by companies to employees so that they and their families are offered the advantages of bearing the costs of treatment, hospitalization and operations, as well as any prior examinations in all cases of illness with some conditions, the high costs of health care may make employees seek the benefits of health insurance for employees.

But the cost of losing employees by not providing health insurance can exceed the cost of providing it. So having some kind of health benefit in your compensation package is vital.

What are the health insurance subscription rates for employees?

Employee health insurance subscription rates vary depending on the type of insurance plan that the employee falls under, and there are many factors that affect this price, as well as whether the plan includes the employee and his family or not.

If an employee falls under a plan for him and his family, this type of plan is usually called a group health insurance plan, an employer-sponsored health insurance plan, or a "full insurance plan."

In 2022, the average annual cost of employer-sponsored health insurance premiums per employee was about $22,463 for family coverage and $7,911 for individual coverage. Many employers also continued to offer valuable programs in telemedicine, mental health and wellness.

Although specific costs will vary due to many key factors, such as the health insurance company and the size of the company, the average cost of group health plans will typically increase annually.

To better control the cost of health insurance, we'll learn how to change contribution strategies or plan features in the section below.

Top 8 Factors Affecting Employee Health Insurance Premiums

There are many factors that affect the amount that an employee pays for health insurance and not all of them are considered within the limits of the person/ however it is good to be aware, knowledgeable and understanding of what they are, and below we present to you the top 8 main factors that affect the cost of health insurance premiums:

Factors affecting health insurance premiums

  • Health insurance laws: Egypt's health insurance laws specify the maximum percentage an employee pays and how much insurance they can charge.

  • Type of insurance an employee falls under: Whether you are insured by an employer's group plan or an individual insurance plan for yourself, both are a factor that affects the amount you will pay.

  • Income level: Low-wage workers tend to pay more through employers but may pay less through employer bearing.

  • Employer size: Insurance is usually cheaper in large companies.

  • Place of Residence: Preferential rates vary depending on the city in which the insurance company is located.

  • Type of village or city you reside in: Premiums tend to be lower in urban areas than in rural areas.

  • Type of plan under which the insured falls: Insurance plans and packages are divided according to certain categories that move from silver, gold, platinum and others, and the different the category, the higher the cost and the greater the benefits.

  • Employee's age: Health insurance rates rise as the policyholder ages, with an even greater increase after the age of 55.

What is the percentage of employee deductibility from the health insurance contribution?

The employee's deductibility varies according to many of the factors we mentioned earlier, most of which are the age group, type of insurance, the plan that the employee follows, etc.

  • In the latest insurance policies, the employee's contribution was up to 11% of the total social insurance salary, and the contribution wage was set at a minimum of EGP 1,200 and a maximum of EGP 8,100.

  • But as of January 1, 2022, the subscription fee has been set at a minimum of EGP 1,400 and a maximum of EGP 9,400.

  • The minimum and maximum have been increased by 15% on January 1 each year for a period of seven years, starting from January 1, 2021.

  • Therefore, as of January 1, 2023, the minimum social insurance salary will be EGP 1,700, while the maximum salary will be EGP 10,900.

  • These two limits should be increased by the inflation rate as of January 1, 2028, taking into account the rounding of the minimum and maximum to the nearest hundred pounds.