Question: My employer (we have way less than 50 full time workers) plans on dropping our group plan and instead offering $200 (apparently pre-tax) to each employee who provides evidence of purchasing a health insurance policy at the exchange. We all have modest incomes and fall within the household income ranges to qualify for a subsidy. Is this a positive step for all of us? Will we be allowed to have a tax favored reimbursement of $200 and a subsidy from the Exchange?

Answer: Yes. This is a good deal for you. You get subsidized coverage in the exchange plus a contribution from your employer. Whether or not the $200 can be pre-tax to the employees is debatable at this point, but even if it gets taxed as income, it’s still a good deal for you and your employer as well - a win-win.