1) Company pays you 100k of which you then go spend 19k in the private insurance market to buy insurance leaving you with 81k after insurance costs.
2) Company pays for your health insurance and then pays you a salary of 81k.
They sound the same right? But they aren't! In #1 you will pay income tax based on a 100k salary. In #2 you will only pay income tax on 81k of salary. So you're better off in scenario #2.
Given the strong employee preference for #2 most employers in competitive hiring situations will tend of offer employer sponsored health care.
There are some other reasons why this happens too, but this is one of the biggest.
1) Company pays you 100k of which you then go spend 19k in the private insurance market to buy insurance leaving you with 81k after insurance costs.
2) Company pays for your health insurance and then pays you a salary of 81k.
They sound the same right? But they aren't! In #1 you will pay income tax based on a 100k salary. In #2 you will only pay income tax on 81k of salary. So you're better off in scenario #2.
Given the strong employee preference for #2 most employers in competitive hiring situations will tend of offer employer sponsored health care.
There are some other reasons why this happens too, but this is one of the biggest.