Is It Cheaper To Get Health Insurance Through an Employer?
Health insurance can help protect you and your dependents from high medical costs. Obtaining health insurance through an employer is often cheaper than purchasing health insurance independently from your job - this is because your employer will help cover some of your health coverage and medical expenses.
If you are unemployed or cannot afford health insurance, Mira is a great affordable healthcare alternative. With Mira, you can receive lab testings, urgent care visits, and up to 80% off prescriptions for just $45 per month. Sign up today.
What Employer-Sponsored Health Insurance Is
Employer-sponsored health insurance is a health policy plan that is chosen and bought by your employer. After selecting the policy, the health insurance plan will be offered to eligible employees and their dependents.
There are several advantages to utilizing employer-sponsored health insurance. For example, you and your employer will typically share the cost of your premium. Additionally, your employer will perform all of the work needed to choose a plan.
The premium contributions made by your employer are not subject to federal taxes, and your taxable income will be lower because your contributions are made pre-tax. See the table below for a deeper understanding of the differences between an individual plan and an employer-sponsored health insurance plan.
How Employer-Sponsored Health Insurance Works
| Factor | Individual Plan | Employer-Sponsored Plan |
|---|---|---|
| Who chooses the plan | You | Your employer |
| Coverage remains if you change jobs | Yes | Limited |
| Coverage of pre-existing conditions | Yes | Yes |
| Premiums can be made pre-tax | No | Yes |
| You can choose a plan that includes your preferred medical providers | Yes | Limited |
Source: MedMutual
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Madeline is a Senior at UCLA majoring in Human Biology & Society with a minor in Spanish. She's currently a Healthcare Research Analyst at Mira, writing content for the blog to help the public better understand certain medical issues, technologies, testings, and the importance of healthcare.