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Premium Only Plan (POP) Explained

A premium only plan (POP) allows you to pay for your health, dental, and vision insurance premiums using pre-tax dollars. Using pre-tax dollars for your premiums increases your take-home pay and provides tax savings throughout the year.

How does it work?

In most cases you are automatically enrolled in this plan if you elect health, dental, or vision insurance coverage--unless you opt out of pre-tax premium payment. This means that your group health plan premium contributions will be automatically deducted from your salary before federal, state, and FICA taxes are withheld.

If you prefer not to participate in this benefit, simply complete a "waiver" form before the beginning of each plan year. You can get this form from your employer.

What if I want to make a change?

Your participation in this plan cannot be changed or canceled during the plan year, unless you experience a qualifying event as defined by the IRS. These include:

  • Marriage
  • Divorce
  • Birth or adoption of a child
  • Your spouse loses or gains employment
  • A significant benefit or rate change to your existing health plan occurs

Contact your employer within 30 days of a qualifying vent to make changes to your participation status.

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