7 ms·

I believe it's not just tax free, right, it's just priced into your salary. They won't give you the employer contribution back as cash if you decline, will they

• gruez 8y ago
  The money that goes towards the health insurance isn't subject to income tax, so it's cheaper than taking the money and buying yourself. employer provided health insurance: $50k salary $5k health insurance $50k taxable income buy your own health insurance: $50k salary $5k in lieu of health insurance $55k taxable income
  • hyperpape 8y ago
    But it's better/worse than that. Because they won't pay you $55k if you decline healthcare. Instead, you get paid $50k with the option to get healthcare (take it or leave it). My family's insurance healthcare isn't tax-free, which would mean saving $2k or $3k or whatever. It's over $10k of insurance a year that I pay less than $2k for.