You may have visited this page: https://diversifiedhumansolutions.com/comparison/

Group plans are great!  They’re less expensive for the exact same thing.  Oh wait… there’s more! Employees can pay for their share of the monthly premium via pre-tax, “above the line”, deductions.  So the health / benefits premiums are paid out of GROSS wages… BEFORE federal, state, local, Social Security, Medicare, and any other applicable taxes are calculated & withheld!

So let’s say you pay for individual health insurance through the “exchange” and pay $500 a month for it.  It comes from your bank account and that’s that…Here’s how it works with a group plan.

PAYING FOR INDIVIDUAL INSURANCE

Normal Paycheck = $2000

Taxes (let’s say 30% total) = $2000*30% = $600

Net Pay = $1400

Minus previous health insurance cost of $500 = $900 left for you.

PAYING FOR GROUP INSURANCE

Normal Paycheck = $2000

Minus cost of the group plan = $2000 – $500 = $1500

Taxes (let’s say 30% total) = $1500*30% = $450

Net Pay = $1050!  That’s $150 more than before!

Because you paid for the insurance via pre-tax benefit, that led to an additional $150 in your pocket through tax savings!