In a non-contributory group policy, what percentage of eligible employees must participate?

In a non-contributory group policy, the requirement for participation is that 100% of eligible employees must enroll in the coverage. This means that there is no financial contribution required from the employees; the employer pays the entire premium. Because of this arrangement, insurers typically require full participation to ensure that the risk pool is adequately funded and to prevent any adverse selection, where only those most likely to need insurance sign up.

This requirement helps maintain lower costs for the insurance coverage since everyone participates regardless of their individual health status. In contrast, other participation levels, such as 75%, 50%, or 25%, typically apply to contributory policies where employees contribute to the cost and not everyone may choose to enroll. Hence, in the context of a non-contributory policy, requiring 100% participation aligns with the structure designed to support the risk-sharing needed for such plans.