My employer currently provides two health insurance options for employees:
1) a traditional PPO/POS plan and
2) a high deductible plan with an HSA funded at a level equivalent to the cost of the difference in premiums between the two.
I currently have an "open market" health plan with the same benefits of #1 above for my dependents (spouse & 2 children) with an out of pocket expense of about $500/month. I could be added to this "open market plan for an additional $200/month.
I'm trying to find a way to take the employer contribution (about $500/month) and put it towards my open-market plan which would reduce my out-of-pocket insurance expense by $300/month.
One obvious solution would be to opt-out of the insurance benefit and take additional compensation equal to the cost of the insurance reimbursement -- the problem is that this additional compensation would result in both increased payroll taxes and income taxes.
Is there a better way that the employer could fund the purchase of an over-the-counter policy and avoid the tax implications?