A premium payment plan (also called premium-only plans (POPs) or premium conversion plans) is the most common form of cafeteria plan. A premium payment plan has only one objective: to permit employees to pay for their share of the premiums for certain insurance coverages with pre-tax dollars (e.g., group health insurance premiums). The employee elects to reduce her salary each month in an amount equal to her share of the insurance premium, and the employer in return agrees to provide her with health insurance.