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Home » Business and Management » Large Corporations Can Save Their Money Through Premium Only Plans

Large Corporations Can Save Their Money Through Premium Only Plans

With the recent dramatic increases in health care premium prices, the current trend of corporate strategy involves utilizing the competitive marketplace through managed care plans.

While managed care plans have benefited many corporations in the short term, national surveys indicate that contemporary benefit strategies have failed to halt the gradual decline in sponsored benefits among large corporations. 

Premium Only plans allow corporations to deduct their employees' premium contributions before taxes. Not only does the tax-free deduction greatly increase the employee's take-home pay, it also equates to annual FICA tax savings for employers. You can find expert solutions for premium only plan compliance services, through online platforms.

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Premium Only plans are especially beneficial for large corporations, as the tax benefits provided through the underwriting of large employee corporations provide a gradually increasing tax return; indeed, large corporations that use a POP plan generally have all costs associated with their initial setup reimbursed within the first year of compliance. The accessibility of POP plans combined with legislative promotions that occur nationwide ensure that premium plans are only compatible with most pre-existing benefit plans and strategies.

Over the past decade, the percentage of people with employer-sponsored health insurance has decreased from 69% to 61%. A deceptively slight change until the eight percent decrease is considered to be equivalent to approximately 7.3 million people losing their insurance benefits. Large corporations interested in increasing the rising cost of health care premiums, and thus avoiding the loss of their sponsored health care, should consider single premium plans as an affordable and accessible money-saving strategy.