Premium Only Plans-A Tool to Compensate for Inadequate Employee Wages
With the mounting pressures placed legislatively on health care providers, premiums have seen a mounting increase over the last several years. With the average cost in family health care premiums increasing 113% in the last decade, and businesses struggling to continue providing sponsored health benefits at reasonable prices, employees are feeling the squeeze where their finances are concerned. Employees of businesses offering sponsored health insurance should promote the utilization of a Premium Only Plan for their sponsored health insurance. Between the tax-savings POP plans provide employees and the increase in affordable benefit options premium only plans allow your company to offer, employee POP plan literacy and promotion is invaluable as a money saving strategy for employees.
As national health care premiums have risen, a chasm has grown between growing financial burdens and insufficient employee wages. Over the past decade, employee wages have only grown an approximate 34%; a misleading increase when you consider that 27% of was compensating for regular economic inflation. With only an approximated 7% wage increase to compensate for rising health care premiums, employees and employers alike are struggling to control and meet the cost of sponsored benefits.
In many ways the compensation gap is a result of the rate at which costs are climbing. The Kaiser Family Foundation has indicated that the cost of premiums is rising significantly faster than either employee wages or natural inflation can compensate for. With average premium costs increasing 2.1 percent faster than wages and 3.2 faster than inflation, strategies and tools benefiting the employee are few. Premium only plans are one of the few accessible and effective strategies employees can utilize to alleviate the pressures of sponsored health care premiums.
Employees who participate in premium only plans enjoy generous and substantial tax breaks. Employee insurance premium contributions are deducted from their pay before taxes are withdrawn. This increases the take-home pay of employees, and saves hundreds of dollars in taxes over the course of the plan year. POP plans generally synergize seamlessly with currently sponsored health care plans, so aside from subscription requirements, compliance to a POP plan is a generally simple process.
Employees interested in utilizing premium only plans and the tax savings they offer should recommend their employer to http://taxfreepremiums.com/ for more information. Often, any costs associated with subscription to premium only plans are compensated for within the first year as employers participating in POP plans save an annual 7.65% in FICA taxes; as such, employers have little to fear and much to gain where compliance is concerned. http://taxfreepremiums.com/ offers expert advice, key compliance documents, and affordable web-based premium only plan management.