[chuniverse]

One side effect just to think about, i wouldn’t take employer coverage because I’m covered by the VA, so any amount of premiums is simply an added cost, plus the large deductibles that often come with most health plans now.

However this type of system I would probably be incentivized to get something for my $500 per month. So I would probably elect to get some additional coverage even just the bare minimum without going over. This has good and bad side effects, one is that now I cost the employer $500 per month while before I was 0, but at the same time it’s better for the health plan as an under-utilizer to keep the overall costs of the plan low.

Would ancillary plans be eligible such as dental or vision or is it limited to a Health plan?

[kevc]

As long as you are enrolled in health coverage (whether yourself, or on a spouse's plan) you can spend your employer's health funds on dental and vision.