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Through an employer, premiums are paid with pre-tax dollars whereas on your own, they are paid with after-tax dollars.
by gcheong 17y ago
Through an employer, premiums are paid with pre-tax dollars whereas on your own, they are paid with after-tax dollars.
- anamax 17y agoPre-tax vs post-tax is only relevant if you have taxable income, which isn't the case for "quitting work to do a startup". I've got a suspicion that few of you have actually run the numbers, so I'll help. I'm over 50, male, unmarried, and in San Jose and my reasonably comprehensive plan cost $325/month. If you're 20-30, you could get the same for significantly less, and you'd be adequately served by a somewhat lesser plan. (I'd have a lesser plan if I was younger.) If you're somewhere else (not SF), or are married or female, you can do better. Note that $325/month is significantly less than rent. Health insurance actually isn't a significant obstacle for the vast majority.