tag:blogger.com,1999:blog-10533897.post111452560254632085..comments2023-12-22T09:29:45.273-05:00Comments on InsureBlog: Forcing Employers on Medical Insurance...H G Sternhttp://www.blogger.com/profile/09024546809016528222noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-10533897.post-1114547495109226492005-04-26T16:31:00.000-04:002005-04-26T16:31:00.000-04:00My personal opinion is that employers should provi...My personal opinion is that employers should provide as many health benefits as possible . . . in lieu of higher wages. The tax breaks to the employer (and employee) are considerable. <BR/><BR/>To the employer, health insurance premiums avoid matching FICA taxes which saves almost 8% on every dollar paid compared to paying the same amount in wages. Health insurance premiums are not subject to Workers Comp, FUTA or SUTA which further saves money. And just like wages, employer paid health insurance premiums are tax deductible.<BR/><BR/>The employee gets a benefit that is free of (state & federal)income & FICA taxes. That means that $100 in wages is equal to take home pay of $75 - $80 for most employees. But $100 in health insurance premiums paid is roughly equal to $130 in before tax wages.<BR/><BR/>But requiring employers to provide health insurance is counter-productive if the idea is to grow your economy. Of course the trade-off is, workers who do not have company health plans may opt to forego coverage entirely which creates an entirely different financial problem that must be dealt with by society.<BR/><BR/>We have too much government interference already in business, and even more so in the health insurance arena. What we need is less government mandates and more free market choices.Bob Vineyardhttps://www.blogger.com/profile/01797362875340794937noreply@blogger.com