In noncontributory group insurance plans, what percentage of eligible employees must be covered?

In noncontributory group insurance plans, it is required that 100% of eligible employees be covered. This means that the employer provides the entire premium for the coverage, and no part of the cost is borne by the employees. The rationale behind this requirement is to ensure that the insurance spreads risk across the entire eligible workforce, which can help achieve lower overall premiums and provide comprehensive coverage for all employees without requiring them to contribute financially.

In contrast, plans that allow for some employee contribution often have different coverage requirements, which might not demand 100% participation. By mandating full coverage in noncontributory plans, this approach ensures inclusivity within the group and enhances the group’s ability to manage risk effectively.