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This post is confused. Employer-sponsored healthcare is excluded from both payroll and income taxation which makes it very attractive for employers to offer. Th
by pbreit 11y ago
This post is confused. Employer-sponsored healthcare is excluded from both payroll and income taxation which makes it very attractive for employers to offer. The author doesn't understand how marginal tax rates work. Only incremental dollars are taxed at the higher rate so it's not like you hit some taxation cliff. If health "insurance" really was "insurance" it really would be a "bet". Instead, it's become more of a payment plan with an insurance component. "Real" insurance is now called "catastrophic insurance" and is dying in the US (I think Obamacare basically outlaws it).
- triangleman 11y agoActually, high deductible health plans ($10k+ deductibles) are on the rise after Obamacare was passed.
- pbreit 11y agoDeductibles are part of it but coverage is the bigger element. What is typically referred to as "catastrophic insurance" is only available to people under 30 or with a "hardship exemption". Higher deductibles and higher coverage (i.e., higher premiums) are basically the worst of the worst situation.