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Premium Only or Premium Conversion Plans

A Premium Only Plan (POP), also called a Premium Conversion Plan (PCP), can be added to any group insurance plan without changing any existing benefits. Through these plans, employee contributions for group sponsored medical, dental, vision, disability, life insurance, and an assortment of other health based benefit premium costs can be paid by employees on a “pre-tax” basis. This arrangement can greatly reduce an employee’s cost for contributions made to these plans. In addition, for the sponsoring employer, there is a reduction in payroll related taxes and other costs that can more than offset the expense of offering this type of arrangement. If your employees are paying for benefits, make sure you have established and properly administered your plan. For a review of your existing plan or information on adding this valuable option, please contact us at