[jedberg]

Why wouldn't it be legal? The allocate $10,000 pretax dollars per year for health care (this was 10 years ago, it's probably more now). You select whatever plan you want. They pay the premium. They then pay you the rest as taxed compensation.

It's legal for companies to pay your health plan with pre tax dollars. Basically they just set your salary a few bucks higher each month for whatever the difference is.