(6) Employee Benefits

We have no defined benefit pension plans or any post-retirement benefit plans. We offer our employees a 401(k) Plan, where we match 100% of the first 4% that an employee contributes and a discretionary Deferred Bonus Plan for certain key employees. We also offer health benefits to all employees and their families. We have 2,289 participants in our employee health plan. The plan does not cover dental, vision, short-term or long-term disability. These coverages are available on a voluntary basis. We bear some of the risk of our employee health plans. Our health claims are capped at $200,000 per person with a maximum annual exposure of $14.4 million not including premiums.

Our employee benefit expenses for the years ended December 31 are below (in thousands):



	2017		2016		2015
Health benefits, including premiums	$	13,311	$	12,672	$	13,400
401(k) matching	1,892		1,458		2,267
Deferred bonus plan	677		588		445
Total	$	15,880	$	14,718	$	16,112

Of the amounts in the above table, $15.5 million, $13.8 million, and $15.2 million for 2017, 2016, and 2015, respectively are recorded in operating costs and expenses with the remainder in SG&A.

Our mine employees are also covered by workers’ compensation and such costs for 2017, 2016 and 2015 were approximately $2.8 million, $2.3 million and $4.6 million, respectively, of which $2.5 million, $2.3 million, and $4.6 million, respectively are recorded in operating costs and expenses with the remainder in SG&A. Workers’ compensation is a no-fault system by which individuals who sustain work related injuries or occupational diseases are compensated. Benefits and coverage are mandated by each state which includes disability ratings, medical claims, rehabilitation services, and death and survivor benefits. Our operations are protected from these perils through insurance policies. Our maximum annual exposure is limited to $1 million per occurrence with a $4 million aggregate deductible. Based on discussions and representations from our insurance carrier, we believe that our reserve for our workers’ compensation benefits is adequate. We have a safety conscious workforce, and based on our experience modifier, our claims are averaging 27% below that of our peers in underground coal mining in the state of Indiana.