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VMA131Marine

(4,937 posts)
9. Most people who get insurance through their employer will be horrified by the cost of his plan.
Sun Feb 26, 2017, 02:30 PM
Feb 2017

But, that's because most of those people have no idea what their employer's contribution is. I suspect, if they knew, they would be staggered. My employer contributes about $12k to the HDHP I get through them and I pay about half of that amount. People who need COBRA soon find out how much their insurance is subsidized by their employer. You have to compare the Obamacare rates with the employer and employee contribution in an employer group plan to get an accurate comparison. Employers get a tax break for their contribution to coverage, which they would lose if they just paid the employee that amount and told them to get insurance on their own. In addition, in that scenario, the combined value of the employer and employee contribution would be much less under current tax rules because it would become taxable income.

I would be curious to know how much the government subsidizes plans for those in Congress. Probably a lot since the plans are known to be very comprehensive.

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