Premium Contribution Plan
The Premium Contribution Plan is included with fully insured medical groups with less than 100 covered employees.
The Premium Contribution Plan allows employees to have their premiums for qualified group plans deducted from their income on a pre-tax basis. Qualified group plans include medical, dental and vision premiums, as well as disability, life (up to $50,000 in coverage) and special cancer or hospital indemnity policies. The premium payments are deducted from the employee’s income and paid directly to the insurance carrier via the employer. This is not a reimbursement account.
How does it work?
If an employee elects to enroll in the Premium Contribution Plan, the premium for qualified benefits will be deducted from their income each pay period. Employers send premiums to the carrier(s) each month, as usual. The difference is that the employee’s portion is deducted from his or her income on a pre-tax basis. Because the premiums are sent directly to insurance carrier(s), funds are not forfeited at the end of the year.
Like a Flexible Spending Account, employers and employees still save money each month because taxes are reduced.
BenefitHelp Solutions for administration
With so many intricate policies, guidelines and regulations, benefits administration is best left to the experts. BenefitHelp Solutions, an ODS subsidiary, offers several third-party administrative products to make benefit administration easy. Contact a BenefitHelp Solutions marketing representative for a proposal or visit the website for more information.
Learn more about these BenefitHelp Solutions services:
Log in to Benefit Tracker
Check benefits and eligibility
Log in to Benefit Tracker
Check benefits and eligibility
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