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hyperpape | karma 8632 | avg karma 3.7 · 2018-07-17 16:03:23

I believe it's not just tax free, right, it's just priced into your salary. They won't give you the employer contribution back as cash if you decline, will they?

gruez | karma 34333 | avg karma 2.33 · 2018-07-17 16:20:01+00:00

The money that goes towards the health insurance isn't subject to income tax, so it's cheaper than taking the money and buying yourself.

employer provided health insurance:

    $50k salary
    $5k health insurance
    $50k taxable income

buy your own health insurance:

    $50k salary
    $5k in lieu of health insurance
    $55k taxable income

hyperpape | karma 8632 | avg karma 3.7 · 2018-07-17 19:36:05

But it's better/worse than that. Because they won't pay you $55k if you decline healthcare. Instead, you get paid $50k with the option to get healthcare (take it or leave it).

My family's insurance healthcare isn't tax-free, which would mean saving $2k or $3k or whatever. It's over $10k of insurance a year that I pay less than $2k for.

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