[lbo-talk] Heath care plan ...

[Jordan Hayes]

So has anyone been tracking this?  The one unbelievable item is that 
(according to the article I read, YMMV) you'd get the full deduction 
($7500/$15,000) even if you bought coverage that didn't cost that much. 
If true, this amounts to raising the "minimum tax-free wage" -- by a 
lot!

Now I don't know who these people are who are paying this amount for 
coverage, but it seems to me that the limits might be too low.  It also 
might set up some weird arbitrages: I know people who have incorportated 
their sole proprietor businesses so that they could take more advantage 
of the business deduction for health insurance, but in some cases it 
might be cheaper for them to go back to buying it directly as an 
individual.  I certainly know people who are paying more than $1k/mo for 
their insurance; I just can't imagine an employer-sponsored plan that's 
that high.

/jordan