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Small Business Employee Benefits and HR Blog

What Types of Individual Health Insurance Premiums Can Be Reimbursed Tax Free By a Section 125 Premium Only Plan (POP)?

Section 125 Premium Only Plans (POPs) can reimburse the following types of insurance premiums provided they were not already paid with pre-tax dollars:

    • Major medical individual health insurance premiums

    • Limited benefit individual health insurance premiums

    • Dental care and Vision care premiums 

    • Qualified Ancillary premiums (e.g. accident policies)

    • Medicare Part A or B, Medicare HMO, and employer-sponsored health insurance premiums

    • Medicare Advantage and Supplement premiums

    • COBRA premiums;

Note: Long Term Care Premiums are not reimbursable by a Section 125 POP plan.