Media reports of Affordable Health Care Act policies and controversies permeate our day-to-day information exchange.  Health care, ever the national fixation as 2011 draws to a close and 2012 looms ahead, is commonly understood as an important and problematic service.  As AHCA mandates come into effect, healthcare premiums rise and employer sponsored healthcare continues to be the most abundant and viable source of coverage in the United States, employers are going to have to look toward clever, creative, and efficient cost saving strategies in order to maintain the strength and integrity of their group healthcare plans.

Employers not explicitly aware of all of the current cost-saving strategies available shouldn't take it personally.  Beneath the barrage of information and conflicting reports all working to subvert and propagate one another, its easy for the proverbial diamonds in the saturated rough be misplaced.  Business owners should be happy to know that, as employer sponsored healthcare provides coverage to the great number of insured Americans (approximately 157 million, according to the most recent Kaiser census) a number of State and Federal promotions/strategies have been developed in order to secure the accessibility and affordability of sponsored health insurance.  One such strategy, the IRS provided section 125 premium only plan (POP) allows employers endeavoring to provide excellent benefits to empower their employees with tax-free dollars.

Why have legislative allowances and promotions been developed in the last ten years to promote employer sponsored health care?  In answer to this question, we can look to a survey and analysis conducted by a research organization called the Common Wealth Fund.  According to the survey, healthcare premiums have risen disproportionately (i.e., excluding normal inflation rates) faster than employee wages.  Over the last year alone healthcare premiums have risen by 9%; a staggering rise in price when compared to the mere 2% employee wages rose over 2010.  The result of the epidemic has been a national decline in the percentage of covered individuals.

            In response to the crisis, the Federal government has required via the AHCA that, as of 2014, businesses employing fifty or more employees will be required to provide affordable (less than 9.1% of their household income) sponsored health care (exclusions and prerequisites apply).  With so many employees unable to afford their sponsored health care and the price of premiums gradually increasing the hammer of financial burden is going to come down most heavily on employers.   

            Employers should look to section 125 premium only plans as a source through which they can better control the price of healthcare premiums and provide their employees affordable, accessible benefits.  Premium only plans allow employers to deduct employee premium contributions before regular taxes are deducted; employee take-home pay is increased, the affordability of sponsored health care grows dramatically, and employers enjoy a whopping 7.65% reduction to their matching annual FICA taxes.

            To subscribe to a POP, or for more information, feel free to visit Taxfreepremiums.  Taxfreepremiums handles all initial paper work required for subscription to a POP, and continues to provide automatic year round updates in order to ensure compliance.