According to a national survey of employee-sponsored health plans, HMO coverage averaged $3,185 per worker in 1996. PPO coverage averaged $3,293 per employee.

Although insurance premiums vary by state, plan design and carrier, five major factors determine the pricing structure for group insurance premiums:

• The scope of the plan. Premium costs are determined by prescription, hospitalization, chiropractic, mental health, alternative medicine and other healthcare services covered by the plan.
• The amount of co-pays and deductibles. Premiums are directly linked to employee co-pays and deductibles: the lower the co-pay, the higher the premium.
• The doctors covered under the plan. Insurance premium costs depend on the number of and type of healthcare providers available under the plan.

• The age of the participants. It´s more expensive to insure older employees than younger employees. Breakdowns are usually in 10-year increments.
• The cost of medical care in your area. If your area has expensive healthcare, expect higher premiums. Healthcare in major California cities, for example, is more expensive than in semi-rural areas or smaller towns.