In an employer/union-sponsored subsidized plan, how does the employer contribute to the premium?

In an employer/union-sponsored subsidized plan, the structure typically involves the employer actively contributing to the premium. This means that the employer usually covers a significant portion of the healthcare costs, which helps reduce the financial burden on employees or union members. The key aspect of these types of plans is the support provided by employers, enhancing accessibility to healthcare for employees.

When considering the other options, they do not align with the common practices seen in subsidized plans. For example, it is not typical for employers to refrain from contributing altogether; they usually play a crucial role in funding the premiums. Additionally, contributions are generally not limited to retirees; if there are contributions, they apply to active employees as well. Furthermore, providing a bonus in lieu of a premium contribution is not a common practice in employer-sponsored healthcare plans, as this would not help in covering the actual healthcare costs for the employees.

Thus, understanding the employer's role in subsidizing health insurance premiums highlights the significance of their financial support, which is essential for making healthcare coverage more affordable for the workforce.