Definition - What does Employee Contribution mean?
An employee contribution, within the context of health insurance, is the portion of health care premiums or other health care costs paid by the employee. When an employer subsidizes health insurance, this reduces the amount of the employee's contribution.
WorkplaceTesting explains Employee Contribution
An employee contribution may account for all or only a portion of total health care payments for a given organization. Differences in benefits provided, employees covered, cost-sharing, and geographic location all impact the cost of total health care premiums and the proportionate share paid by employees. In addition, most employee contributions will include the payment of deductibles, co-payments, or other cost-sharing mechanisms.