Originally Posted by TJJEEP
I have heard a lot of companies are doing this. Is there anyway to get around the taxed v pre-tax dollars?
The big drawback is the money companies are giving people is taxed where insurance through your company is using pre-tax dollars.
So if you are currently receiving insurance through your company and it costs you $600 per month, if a company switches to paying you instead of providing insurance, that $600 insurance will cost you an extra $150 a month to buy. (Assuming the premium price is the same as it was, and a 25% tax bracket)
Is there any way to set it up to buy insurance with pre-tax dollars?
Correct me if im wrong on this, but I believe the only way to do that is for your employer to cut a separate check or deposit it into a HSA account? From there anything spent on medical expenses is tax free.