Question: Once the Exchange is up and running will an employer be able to pay the Exchange for employees who buy their own health insurance from the Exchange? Would that be pre-tax for the employer?
Answer: No. The employer cannot pay Covered California directly for the employees’ premiums in the individual exchange. If the employer reimburses some or all of the employees’ premiums those payments would NOT be tax deductible to the employer and such payments would be taxable income to the employee.