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1 - If my company buys health insurance for me, its tax deductible(pre-tax), if I buy it myself it is after-tax. Now companies are can just gross-up pay, and do

by cascom 7y ago

1 - If my company buys health insurance for me, its tax deductible(pre-tax), if I buy it myself it is after-tax. Now companies are can just gross-up pay, and don't have to compete on healthcare... 2) Pooling remains an issue, but as it stands now, consumers have little to no choice, one would imagine that once a 125m households start shopping for insurance there is going to be competition on price... in most circumstances

war1025 7y ago
I believe the pre-tax post-tax thing is actually wrong. The difference is that you pay for the plan with post-tax money until tax season rolls around, when if I remember correctly (from having an individual plan for several years) you get to deduct those costs. So really, it's just the typical American thing of people being terrible at understanding tax codes and adjusting their withholdings correctly.
- lotsofpulp 7y ago
  Source? IRS specifically states: https://www.irs.gov/taxtopics/tc502 https://www.irs.gov/taxtopics/tc502 >You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure the amount you're allowed to deduct on Form 1040, Schedule A. It’s another subsidy for big business in the US. If you work for a small employer that doesn’t offer health insurance, you’re paying with after tax money.
  - deleted 7y ago
    [deleted]
  - war1025 7y ago
    My reading of this [1] seems to match up with what I said: """ - If you buy health insurance through the state- or federally run health insurance marketplaces, you can deduct only the portion of the premium you pay out of your own pocket. You cannot deduct the amount of any subsidy. - If you buy an individual or family health insurance plan, either on the open market or through a marketplace, and you pay all of the cost out of pocket, then the whole amount is deductible. """ [1] https://www.insurance.com/health-insurance/health-insurance-basics/are-health-insurance-premiums-tax-deductible.html https://www.insurance.com/health-insurance/health-insurance-...
    - lotsofpulp 7y ago
      No, the bullet point right below the one you quoted states at least 7.5% of AGI spend is not deductible.
      - war1025 7y ago
        Hmm. Lame.
- DaiPlusPlus 7y ago
  Health insurance premiums are only fully deductible if you’re self-employed.

by cascom 7y ago

war1025 7y ago

I believe the pre-tax post-tax thing is actually wrong. The difference is that you pay for the plan with post-tax money until tax season rolls around, when if I remember correctly (from having an individual plan for several years) you get to deduct those costs. So really, it's just the typical American thing of people being terrible at understanding tax codes and adjusting their withholdings correctly.

lotsofpulp 7y ago
Source? IRS specifically states: https://www.irs.gov/taxtopics/tc502 https://www.irs.gov/taxtopics/tc502 >You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. You figure the amount you're allowed to deduct on Form 1040, Schedule A. It’s another subsidy for big business in the US. If you work for a small employer that doesn’t offer health insurance, you’re paying with after tax money.
- deleted 7y ago
  [deleted]
- war1025 7y ago
  My reading of this [1] seems to match up with what I said: """ - If you buy health insurance through the state- or federally run health insurance marketplaces, you can deduct only the portion of the premium you pay out of your own pocket. You cannot deduct the amount of any subsidy. - If you buy an individual or family health insurance plan, either on the open market or through a marketplace, and you pay all of the cost out of pocket, then the whole amount is deductible. """ [1] https://www.insurance.com/health-insurance/health-insurance-basics/are-health-insurance-premiums-tax-deductible.html https://www.insurance.com/health-insurance/health-insurance-...
  - lotsofpulp 7y ago
    No, the bullet point right below the one you quoted states at least 7.5% of AGI spend is not deductible.
    - war1025 7y ago
      Hmm. Lame.
DaiPlusPlus 7y ago
Health insurance premiums are only fully deductible if you’re self-employed.