Health Insurance - Employer Sponsored Plans vs Individual Plans

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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

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