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A Premium Only
Plan, also known as a POP plan, is a popular cost-savings vehicle
born out of Internal Revenue Code section 125. A POP plan
helps reduce a company's costs by allowing its employees to pay
for qualified health care premiums with pre-tax dollars. As
a result, both the employer and employees have much to gain from
POP plans.
Employer Benefits
For employers, the benefits of instituting a POP plan are
significant:
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Employers save
on payroll taxes when employees make pre-tax contributions, which
ultimately decrease the amount of taxable pay.
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Premium Only
Plan fees are tax deductible as a business expense.
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Tax savings
often cover the entire cost of administering a Premium Only Plan.
Employee
Benefits
Employees can also benefit from their company's Premium Only Plan:
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Employee
contributions are made with pre-tax dollars, saving them an
average of 30 percent on qualified insurance premiums every year.
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Employees'
total take-home pay increases, increasing their cash flow.
AvMed Has
Chosen a Leader in Benefits Administration
Our partner Ceridian understands the importance of successfully
implementing Premium Only Plans. Our POP plan is easy to
administer, inexpensive, and can be seamlessly integrated it into
your existing health services offering.
Going Above and Beyond
Our partner Ceridian is committed to providing high-quality
customer service to thousands of clients nationwide. With
rapid response and careful attention to your needs, Ceridian is
committed to providing the highest level of service in the
industry.
Related Article
POP
Savings Calculator
Marketing Flyer
To learn more about
POP plans and other AvMed business extras, contact your AvMed
representative by calling (800) 51-AVMED.
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