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home > manage your costs > insurance costs > understanding traditional
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Premium Only Plans: A Great Way to Make Your Savings “POP”
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Another great option you should consider when developing your traditional health plan is a program called Premium Only Plans (POP).
Internal Revenue code provisions allow for employee contributions for premium payments to be made on a pre-tax basis. In most cases, taxable income is reduced and take home pay is increased so your company's Social Security and Medicare tax expense is lower. As a result, the value of your benefits program increases while the tax expense for your business is reduced. While there are certain circumstances in which it is more advantageous for employees not pay for premium costs with pre-tax dollars (such as when a reduction in Social Security wages would be disadvantageous or when a family’s medical expenses are more than 7.5% of their income so they can itemize) but POP should be beneficial to nearly 100% of employees. Please consult with a professional tax advisor to make sure you fully understand the POP program. |
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No two companies are the same, why should their insurance plans? Assurant’s Traditional Health Plans are economical, top-quality, and custom-designed. |
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