Part of the Obamacare legislation was a requirement employers who provide/sponsor health coverage let employees know how much they are dishing out for your health care insurance. You might be surprised.
I’m just looking at a W-2 for 2012, and sure enough in box 12 we have a code DD with a pretty big number in there. The coverage for this particular W-2 is for a couple without any dependents. In short the amount is big enough to…
- Pay a couple’s grocery bill for just about three years
- Pay the rent on a nice 2 BR/2 bath townhouse with attached garage in central Connecticut for six months
- Pay the mortgage and property taxes on a 2,000 sq foot home in central Connecticut for four months
- Travel to Hawaii from New York (2 people) for a week-long, all-inclusive vacation at a nice resort including airfare … twice
- Dinner for two at Ruth’s Chris every week for a year – including drinks, a nice bottle of wine and gratuity
Keep in mind a small portion of those dollars stay at the insurance company and most of it goes to the cost of care and the cost of administration at the health care provider level.
An employee of the A.F.L.-C.I.O. whose health coverage was listed as costing more than $20,000 said: “That knocks my socks off. When I saw the number, my eyes popped out. I appreciate my employer all the more.”
Although this number is being conveniently provided to you on your W-2, keep in mind that you do not pay taxes on these benefits … yet.