Pre-tax Health Premiums a Boon to Employees

Funding Health Care with Pre-Tax Dollars is Too Good a Deal to Ignore

By Ivan J. Miller

 Universal health care systems gain a huge financial boost by using the provisions in Federal law that allow employers and employees to pay health care premiums with pre-tax dollars. For every $100 employers spend on insurance using pre-tax dollars, employees would need their employers to an increase payroll expenses between $119 and $165 dollars for the employee to have enough left, after taxes, to purchase the same $100 of health care insurance. How can this advantage be so large?

Leave a Reply

Your email address will not be published. Required fields are marked *