Short answer: There’s no federal minimum employer contribution, but carriers usually require the employer to pay a minimum share, often around 50% of the employee-only premium, and to enroll a minimum percentage of eligible employees. For applicable large employers, the contribution also has to keep coverage “affordable” under the ACA.
Federal law doesn’t set a minimum employer contribution. In practice, two things drive the decision:
Carrier requirements. To issue a group plan, insurers typically require the employer to contribute a minimum amount, commonly about 50% of the employee-only premium, and to enroll a minimum percentage of eligible employees (a participation requirement). These protect the carrier against adverse selection.
The ACA, for larger employers. An applicable large employer (50+ full-time-equivalent employees) must make at least one offer “affordable,” meaning the employee’s share of self-only coverage doesn’t exceed 9.96% of income for 2026. Contributing more lowers the employee’s share and helps satisfy that test.
Beyond the minimums, contribution strategy is a recruiting and retention lever: a more generous employer share improves take-up and satisfaction, while a leaner share controls cost. Some employers move to a defined-contribution approach, a fixed dollar amount per employee (including through an ICHRA), to make their cost predictable.