Tax Favorable Programs

Tax Favorable Programs

As healthcare costs have risen, tax-favored plans are on the rise. These tax-favored plans are designed to give individuals and businesses tax advantages to offset premium and health care costs. These plans include POP, HRA, HSA and Cafeteria plans.

  • Premium Only Plans (POP)
    • Part of a Section 125 plan, this plan allows for certain employee-paid group benefits to be paid with pre-tax dollars.
  • Health Reimbursement Account (HRA) Administration
    • Allows an employer to make contributions to an employee's account to reimburse eligible expenses.
  • Health Savings Account (HSA) Administration
    • When paired with a qualified high deductible plan, this plan allows employees to set aside pre-tax money to pay for medical expenses. This account rolls over year to year.
  • Full Flex/Section 125/Cafeteria Plans
    • Allows employees to convert taxable benefits into non-taxable benefits, such as pre-taxing medical premiums, HSA contributions, qualified medical expenses and dependent care expenses. Employees can save 20-40% on their payroll taxes.
      • If employee contributions are not exhasuted by the end of the year the money is forfeited. Limited rollover may be available.
  • Limited Purpose Flex
    • Designed to retain HSA eligibility. Can be paired with a high deductible health plan and allows for vision and dental reimbursement, rather than medical expenses.