Premium Only Plans (POP)

Today's healthcare market can be uncertain and full of surprises. Navigating your way through it means coming up with creative ways to make the most of your healthcare dollar.

We offer a way for you to control the cost of employee benefits and enjoy substantial savings: the Premium Only Plan (POP). 1 POP plans reduce payroll taxes on the premium contributions of participating employees. The plan saves money by converting premiums from an after-tax expense to a pre-tax expense.

POP at a Glance

  • Employers get tax savings of 7.65% on FICA taxes on employee premium contributions.
  • Employees can receive tax savings of up to 30% on FICA, federal and most state income taxes.

POP plans are offered to all groups with one or more Blue Shield medical plans. Qualified, non-taxable insurance premiums and health plan dues that can be converted to pretax expenses include health, dental, vision, group term life (up to $50,000) and disability.

Opening a Premium Only Plan

Various companies offer a variety of POP plans that can be used with Blue Shield health plans. Blue Shield has a relationship with Ceridian, a company which offers these accounts.

Ceridian is one of the nation's largest benefits administrators with over 100,000 clients.

Visit  Ceridian for more information.

POP Compatibility

All Blue Shield health plans can be paired with a POP. To learn more about how POP plans can benefit you, contact your broker or Blue Shield representative.

1. Members should consult with a financial advisor to determine if a Premium Only Plan is a good financial fit for them. Blue Shield does not offer tax advice or Premium Only Plans. For more information about Premium Only Plan, eligibility, and the law's current provisions, consumers should ask their financial or tax advisor, Premium Only Plan features may vary by institution and may be subject to change by those institutions.