What type of health insurance requires employees to share a portion of the premium?

Contributory health insurance is a type of coverage in which employees are required to pay a portion of the premium costs in order to be eligible for the insurance benefits. This arrangement encourages employee participation in their health insurance plan, as they contribute financially, which often leads to a greater appreciation of the benefits provided.

In a contributory plan, the employer typically covers a percentage of the premium, while the employee is responsible for the remainder. This model can help employers manage costs while also providing employees with valuable health coverage. When employees contribute to their insurance, they may have a higher level of engagement with their healthcare decisions, as they have a vested interest in their coverage.

Other types of health insurance, like noncontributory plans, do not require any contribution from employees; the employer covers the entire premium. Shared funding and self-funding arrangements involve different approaches to financing and managing health benefits, with varying levels of employer risk and potentially different structures for employee participation. In essence, contributory plans effectively balance the sharing of costs and the collective responsibility for employee health care.