I need help from you all to understand what will likely take place to the insurance that I currently have through my employer. I am 29, my wife is 25 and we pay $500 a month for insurance through my employer currently. The insurance used to be good, but now like everything else it is essentially equivalent to catastrophic insurance. My employer says that they pay $700 a month for me to have insurance, which of course is more than likely blown up for tax purposes. I understand that I will have to pay taxes on the total amount next year which will be equivalent to ($1200 a month for 12 months) roughly $14,400.

1. My first question is, does anybody know what percentage tax I will have to pay on this?
2. If I keep the insurance next year, will I have to pay the penalty for not being part of Obamacare or is the penalty for not having insurance at all?

3. I work for a large employer and I read that if they offer insurance, they will have to pay an amount per employee for providing medical insurance and if they dont they will have to pay a penalty for not providing insurance. Is this true? It seems that many employers will just drop insurance for their employees all together.

Sorry for all the questions, but I am already paying the max that I will pay and if the percent is high, this means I will have to pay $6000 for medical insurance at least next year as it goes up every year AND taxes on $14,400. This will be insane!!! I have read till my eyes are watering and havent been able to find a straight answer.

Thanks for your help!!!!!!!

Edited by DMAG (02/01/13 12:29 PM)