myhousekey

Health Insurance - Employer Sponsored Plans vs Individual Plans

Recommended Posts

Normally I've covered my whole family under the companys HSA plan. However, with our plan costs increasing almost 50% for 2011 renewal, I wanted to see if it made more sense to buy a HSA plan for my wife and kids separately (the company will pay for my HSA plan).

 

I've got a quote that I can compare but am having a hard time calculating the monetary difference when you take taxes into account.

 

With the company plan all of the premiums come out of my paycheck pre-tax.

With the 3rd party plan I'll have to pay the premiums with post-tax money and I don't believe I'll be able to deduct any of those costs as I don't anticipate my total medical expenses for the year being greater than 7.5% of my AGI.

 

So hypothetically, if my employer family plan costs $7500 for the year and the 3rd party plan costs $3600 for the year, how do I compare the costs when taking into account taxes?

 

Do I use the Married filing Jointly Tax Bracket to figure out how much income I'd need to pay the $3600 premium after taxes are taken out? (Can I use the 2010 estimates for 2011 or will the #'s change drastically?)

I guess what is throwing me off is when I look at my last years tax return my effective tax rate was much lower than my actual tax bracket. Do I use that effective tax rate number instead to calculate the approximate amount of income needed to pay $3600 in premiums?

 

What's the easiest way for me to make a general comparison of those two costs?

Edited by myhousekey

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.