[tryptophan]

If EMPLOYER pays you 10k and you want to buy a plan for 5k, you first have to pay taxes on the 10k, lets say 20%, so you have 8k - 5k = 3k left over.

OR

The employer can just buy the 5k plan for you tax free, and pay you 5k instead. This means you have 4k left over after tax! This is because healthcare plans are not taxed if provided by the employer.

Incredibly retarded, yes, it is.

[doktorhladnjak]

Employers also often get better pricing on insurance for their employees because the pool is less risky overall. Those buying health insurance on the private market are more likely to have health problems and need it. Lots of healthy, young employees with limited health problems at tech companies.

[lumost]

Why isn't this just tax deductible?

[doktorhladnjak]

When McCain ran for President against Obama in 2008, there was talk about making employer provided health insurance taxable as a way to even this playing field. The idea was more employees would refuse employer coverage and buy their own for cheaper.

[rullelito]

Then a lot more poor people could get insurance, not very 'merican.