Employer: State government

100,000 employees, $7B payroll, plus retirees, about $1.8B in active and retiree premiums.

Result

+$1,275,018,750

#	Step	Arithmetic	Value
1	Annual payroll		$7,000,000,000
2	Health premiums paid before		$1,800,000,000
3	Payroll above the $250,000 exemption payrollExemption	max(0, $7,000,000,000 − $250,000)	$6,999,750,000
4	Health payroll tax at 7.5% employerTaxRate		$524,981,250
5	Change (positive = employer saves)	$1,800,000,000 − $524,981,250	$1,275,018,750

Input	Kind	Value
Payroll exempt per employer	policy, high confidence	$250,000
Employer health payroll tax rate	policy, high confidence	7.5%

Trade-off: Also sheds retiree-health (OPEB) liabilities and pays its Medicaid MOE instead of its Medicaid share.