What Does Semi Monthly Mean For Health Insurance?

What Does Semi Monthly Mean For Health Insurance?

For the uninitiated, a semi-monthly payment schedule means that you pay your insurance premiums twice a month. This is typically the first and fifteenth of the month. This will result in 24 insurance premiums being paid each year. Then, each month, you will pay the insurance premiums once again. So, what does semi monthly mean for health insurance? And how do you decide if it’s right for you?

what does semi monthly mean for health insurance?

Pay schedules

If you are responsible for paying health insurance premiums on behalf of your employees, you should consider the pay schedule for your company. Most employers deduct insurance benefits premiums on a monthly basis. This makes it easier to administer the payroll deductions. In contrast, a weekly pay schedule has many advantages, but it tends to be more expensive. To save money, consider a biweekly or weekly pay schedule. However, you must consider the expenses associated with each one.

Ideally, hourly schedules are appropriate for part-time, full-time employees, and independent contractors. Payroll processing is often done through various methods, such as smartphone apps. A more frequent payment schedule will allow for accurate adjustments and corrections. This is a good choice for businesses that employ a high number of manual workers. However, consider the number of hours employees work on each pay period when determining your pay schedule.

What Does Semi Monthly Mean For Health Insurance?


Most health insurance companies allow semi-monthly premium payments. These payments are relatively cheap because they can easily be factored into your budget, whereas semi-annual and quarterly premium payments require you to pay a larger sum. Semi-monthly insurance premium payments do not qualify for any discounts, though. Most insurers offer discounts for annual payments, so you will save money with the semi-monthly payment option. Listed below are the benefits of semi-monthly premium payments.

Semi-monthly insurance is also known as bi-monthly health insurance. Semi-monthly payments are expected to be paid twice per month. They can either be made on the 15th and last day of the month or in the middle of the current month. Semi-monthly payments are considered monthly, since you will pay them twice a year. In addition, they are pre-tax, so your income won’t be taxed twice.


Semi-monthly pay frequency divides insurance deductions evenly over two paychecks. In April, the 15th and 30th of the month fall on regular business days. As a result, the first half of the insurance deductions will be deducted on the 15th payment and the second half of the insurance deductions on the 30th payment. Typically, the deductions are the same for all employees, but the method may vary depending on the employer.

The employer-sponsored health plan is often expensive, and family members cannot get help from the government to purchase individual health plans. Eliza, for example, works for a company that offers health insurance for her husband and son. Eliza’s monthly premium is $200, and her husband and son each pay $100. Because she is an employee, her employer pays the entire premium, as does her husband. In addition, her family is covered for half the cost, making the family’s premiums total $150 per month.


When compared to bi-weekly payments, employees will receive larger sums. Employers must process payroll fewer times per year than on a bi-weekly basis. Employers can calculate salaries more easily because they are distributed evenly throughout the year on fixed dates.

With a biweekly pay schedule, employees receive three paychecks two months out of the year. Employees who are paid semimonthly are always paid twice a month. Companies that run payroll on a biweekly basis issue a total of 26 paychecks per year.

The prefix semi- semantically cuts what it is affixed to in half, just as a semicircle cuts a circle in half: Semiweekly denotes two times per week; semimonthly denotes two times per month; and semiannually denotes two times per year.

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