I currently have two options for health insurance, and I'm having trouble figuring out which one will actually save me more money.
- Employer sponsored Health Insurance for Family
- $1,330/month (pre-tax deduction)
- Reduces my taxable income by $15,960
- Employer sponsored Health Insurance for Self
- $127/month (pre-tax deduction)
- Reduces my taxable income by $1,524
- Private Insurance for Family (employer doesn't subsidize for family)
- $600/month (paid for with taxed income)
- Not sure if I can deduct on taxes ... see my other question
So, given the two above scenarios, which one will net me more money? The pre-tax plan significantly reduces my taxable income, but it's expensive. The second plan barely reduces my taxable income and is a little less than half the cost.
Is there an easy way to calculate the net difference between these two approaches so I can make a smart decision?
Also, it is important to note that we cannot go with an HSA at this time because we're planning on having more children and need maternity coverage.
Thanks in advance for your help!