Premiums have seen a drastic increase over the last several years due to the pressures legislature has placed on health care providers. The average cost for family health insurance premiums has gone up 113 percent in the last ten years. Businesses are struggling to provide sponsored health care at affordable prices and employees are feeling a pinch where finances are concerned. One way to help make funds go further would be to have your company join a Premium Only Plan, or POP, for your sponsored health care. POP plans offers employees an increase in affordable benefit options the company can offer and increases employee take-home pay. Using a Premium Only Plan can be an invaluable money saving strategy for employees.

As premiums have risen nationally a larger gap has grown between financial burdens and insufficient wages. Over the past ten years, employee wages have only grown approximately 34 percent, which deceptively decent but is misleading when you consider that 27 percent of that was compensating for regular economy inflation. This means that wages increased a tiny 7 percent to compensate for rising health insurance premiums, leaving employees and employers alike struggling to meet the cost of sponsored benefits.
This money gap is a result of the rapid rate at which costs are climbing. The Kaiser Family Organization has shown that the cost of premiums are rising much faster than employees wages or natural inflation can cope and compete with. Average premium costs are increasing 2.1 percent faster than wages and 3.2 percent faster than inflation and tools benefiting employees are spars. Premium Only Plans are one of the few accessible and effective methods employees and employers can use to alleviate the pressure of sponsored health care premiums.
Employees who participate in POP receive generous and substantial tax breaks. Employee premiums are taken out before normal taxes are deducted. This increases the amount of earned money employees are able to take home, and saves hundreds of dollars over the course of the plan year. Premium Only Plans generally mesh perfectly with current sponsored health care plans. Aside from the subscription requirements and compliance to a POP plan is generally a simple process.
Subscribing to a Premium Only Plan do a great deal more than attempt to correct the employee wage/premium increase. They are one of the few financial strategies that directly reciprocate employee savings back to employers.
Because the premium contributions are tax free, POP plans save employers an average of 7.65 percent in FICA taxes. Employees interested in using the POP plans and the savings they offer should recommend their employers to http://taxfreepremiums.com/ for more information. Often times the cost of subscription are compensated within the first year as the savings for participating save an annual 7.65 percent in FICA taxes. Employers have little to fear and much to gain as far as compliance is concerned. As such, employers have little to fear and much to gain where compliance is concerned. Taxfreepremiums offers expert advice, key compliance documents, and affordable web-based Premium Only Plan management.