We are pleased to have the opportunity to offer an innovative Health and Wellness Insurance Plan which not only provides for a healthier lifestyle for employees, it also provides additional income for employees and employers through the Cafeteria 125 FICA tax reduction program. This design concept helps employers clear the largest hurdle in Health & Wellness Plans….EMPLOYEE ENGAGEMENT.
How The Plan Puts Money Back in the Pockets of Employees and Employers
This is one of the most unique plans in the marketplace in that it is a FULLY INSURED INDEMNITY HEALTH AND WELLNESS PLAN BACKED BY AN A+ RATED CARRIER AND APPROVED BY INSURANCE COMMISSIONERS. This plan utilizes a combination of Cafeteria 125 FICA deductions and indemnity benefit payments by the insurer which offset premium costs for employees and plan fees for employer. Unlike traditional Health Reimbursement plans, indemnity benefits are paid by the insurer when an employee utilizes the participating preventive benefits provided in the plan.
This generally results in a net gain in take home pay for the employee. Additionally, the FICA deductions realized by employers through Cafeteria 125 deductions provide a substantial tax savings to the company (up to $450 per employee per year).
Many companies utilize these additional savings to fund additional medical expense plans including Minimal Expense Coverage (MEC’s) or supplemental products such as gap insurance, critical illness plans, or dental and vision plans. It’s a win/win situation! Employees are engaged in becoming healthier, companies are saving money, and employees are seeing an increase in take home pay or using the savings to fund additional benefits