By NextBestFitHousehold: Single worker, $45k, job-based coverage
Works at a large employer, single coverage.
Result
+$3,458
How it's calculated
| # | Step | Arithmetic | Value |
|---|---|---|---|
| 1 | AGI today | $45,000 | |
| 2 | Employer premium (hidden compensation) | $7,885 | |
| 3 | Worker premium contributions end Paycheck deductions for health insurance stop. | $1,440 | |
| 4 | Covered out-of-pocket costs end Deductibles, copays, coinsurance, and uncovered dental, vision, and hearing. | $1,000 | |
| 5 | Wage increase from employer savings Employer paid $7,885 in premiums and now owes $3,375 in health payroll tax on this worker; the difference, net of the employer's own 7.65% FICA, becomes wages. | $3,561 | |
| 6 | Income tax on newly taxable compensation Premiums were paid with pre-tax dollars; wages are taxed. Federal + state. | −$800 | |
| 7 | Employee FICA on newly taxable compensation 7.65% Social Security and Medicare. The Social Security part also raises future benefits. | −$383 | |
| 8 | Income-based health premium 4.0% of AGI above the $16,000 exemption for a household of 1. | −$1,360 | |
| 9 | Net change per year, long run | $3,458 | |
| 10 | Net change per year, Year 1 | $3,913 |
Trade-off: KFF 2025: single premium $9,325, worker share $1,440.