Health plan cost per employee calculator: what does each enrolled employee cost?
Enter the monthly carrier bill, the enrolled employees and the covered lives to see the cost per employee per month, the cost per covered life and the employer and employee split. Built for HR and finance teams that budget for benefits.
Turn a carrier bill into cost per employee.
Use the numbers from your latest invoice. The result updates as you type.
The full monthly premium for the plan, employer and employee shares together.
Employees who are on the plan.
Employees plus covered spouses and children.
The part of the total premium the employer pays.
Your cost per employee
A planning estimate. Use the same bill month each time you compare, because enrollment changes the result.
What does cost per employee per month mean?
Employers often shorten it to PEPM, which stands for per employee per month. It is the monthly premium divided by the number of enrolled employees. It is the number most finance teams use to budget and to compare one renewal with the next, because it holds steady when headcount moves.
Why look at cost per covered life too?
A plan with many dependents costs more per employee than one with few, even at the same rates. Dividing by covered lives puts a group with a large family count and a group with mostly single employees on the same footing. It also shows whether a rate increase came from price or from changes in who is enrolled.
Common questions
Should the bill include dental and vision?
Use one benefit at a time. Medical, dental and vision have different cost levels, and mixing them makes the number hard to compare year to year.
Does PEPM include employees who waived coverage?
No. It divides by enrolled employees. Divide by all eligible employees if you want the cost across your whole workforce.
How do I use it to test a renewal?
Calculate PEPM on the current bill and on the renewal bill with the same enrollment. Then run the renewal through our renewal increase checker.
What should the employer share be?
It is a plan design choice. Our contribution calculator models the share by tier and the effect on what employees pay.
Talk to us about your benefit costs
Book a 30-minute call and we will review your cost per employee against your renewal and your contribution strategy. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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