Author Topic: Comparing Health Insurance Plans (Pre-tax vs Post-Tax Dollars)?  (Read 575 times)

AndyV

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Comparing Health Insurance Plans (Pre-tax vs Post-Tax Dollars)?
« on: November 20, 2017, 08:09:54 PM »
I'm currently comparing open market insurance plans (family coverage) against my company's offerings.  I'm seeing a potential savings by switching to open market coverage for my wife/son, considering my company covers the entire premium for a single employee.

Current company plan = $1100 per month
Open market for wife/son = $800 per month (roughly equivalent coverage), $0 for my own premium on company plan

Question: I'm getting stuck on how to compare these apples to apples, considering my company's plan is paid for with pre-tax dollars while the open market plan would be paid for with post-tax dollars.  I'm thinking that this may end up being closer to a wash when taking this into account, but i'm stuck on the math here.  From a tax bracket standpoint, we'd be married filing jointly making ~$110,000 gross annual salary.

Thoughts? Perhaps I'm overthinking this?   Thanks in advance.
« Last Edit: November 20, 2017, 08:23:21 PM by AndyV »

MDM

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Re: Comparing Health Insurance Plans (Pre-tax vs Post-Tax Dollars)?
« Reply #1 on: November 20, 2017, 10:24:27 PM »
Might be worth putting your numbers into a couple of comparison tools, e.g., Health Savings Account (HSA) vs. Traditional Health Plan and the 'HDHP Analysis' tab of the case study spreadsheet.