Question

Arthur bought a $90,000 life your employer pays 85% of your health insurance premium. If your premium is $5,236 annually, how much is your share of the premium?

a. $5,236.00
b. $5,151.00
c. $785.40
d. $445.06

Answer 1

To find the employee's share of the health insurance premium, subtract the employer's contribution (85% of the $5,236 premium) from the total premium. The employee's share is $785.40.

Step-by-step explanation:

The subject of this question is calculating the share of health insurance premium. To calculate the employee's share, we take the total annual premium and subtract the employer's contribution.

Total annual premium: $5,236
Employer pays 85%: 0.85 × $5,236 = $4,450.60
Employee's share: $5,236 - $4,450.60 = $785.40

Therefore, the employee's share of the premium is $785.40, which corresponds to option c.