Company Paid Health Insurance
The high cost of health insurance has gotten out of control. As a result new health insurance legislation has been passed. Until the new laws go into full effect workers who work for companies that offer company-paid health care can still benefit from their employer paying the larger portion of their premiums for them. The employer can also sign his employees up for a group policy so the best rates can be given.
Company-paid health insurance is the kind of health insurance that you get when you work for a company that pays for a large share of the premiums. Very few companies pay 100% of company paid health insurance benefits. This type of health insurance can be obtained at very reasonable rates because they are usually group policies. The employer typically pays a large share of the premiums. The employee’s share of the premiums is deducted from their pay check. Most people think that company-paid health insurance is a gift from the employer but it really is not. It is a job benefit, but it is not tally free.
Company-paid health insurance is the cheapest kind of health insurance that an employee can purchase. A lot of companies will offer as a way of competing for the best employees. Workers want to work more for an employer that offers these benefits.
If you work for an employer that is offering company paid health insurance you should take advantage of it. Your salary will not increase if you do not sign up for it so you might as well take advantage of it. If you choose to buy your own private health care your employer will not be paying any part of the premium for you. Refusing company paid health insurance is like getting a pay cut if you really think about it. All of your co-worker actually make more since the employer is paying a large share of the premium. For instance, the employer can pay $250 a month for the premium and the employee may only have to pay about $40 a month. If your employer would give you the $250 a month to buy health insurance you still couldn’t get it at that price. Private health insurance costs a lot more than group health insurance. With the new health insurance laws the company paid health insurance benefit may go by the wayside. Employees may end up purchasing their own health insurance at a higher price. It is anybody’s guess what the consequences to company paid health insurance will be in the future because of the new laws that will soon be taking effect.
When a company offers company-paid health insurance the premium amount they pay is not taxed as income for the employee. If you buy your own health insurance from the money you make each month you will paying for it out of the money you make after taxes are deducted. Not only do you lose the pre tax benefit but you get put into a higher tax bracket if your employer chooses to pay you more and let you buy your own health insurance. It is actually better for the employee if the employer pays the full cost of health insurance premiums.
Even though some employees are not happy with the choices they are given for company-paid health insurance they are still in a better place for obtaining medical care than they would be without it. Private health insurance can be cost prohibitive for a lot of people. Some individuals can not even get health insurance if they have a medical condition. If they can, their condition is excluded from coverage more often than not. That is not the case with company-paid health insurance.