Fortunately, the program we offer can be 100% virtual, easy to comply with, and raise your overall participation rate for employees engagement. We designed the program with that in mind.

Our benefits coordinators will actually help do the install, super easy and convenient once they have access to the payroll data, and also do the monitoring. In essence, they’ll check in monthly to ensure compliance with the program. Compliance is super simple so it’s typically not a challenge. Our wellness center has a team specifically designated to get engagement via the app.

The employee’s policy is 100% portable at the current rates they are paying now. For example, if they could not otherwise get coverage with these living benefits at this rate they could simply keep this or cash it out if needed. We haven’t gone through all the benefits, but this policy is very flexible and can benefit the new employees tremendously over time, as well as the more senior employees who are near retirement with the chronic illness benefits.

Without getting too technical because I am not a tax professional and thereby cannot render tax advice, the programs that have been condemned by the regulatory authorities typically have some sort of indemnity or fixed-indemnity aspect. For example, if you use this structure and choose a benefit that is not allowed by the IRS to redirect the employee’s increased net pay into, you will not be in compliance. The IRS allows for 213(d) expenses. It’s as simple as that. We use the group insurance policy that builds cash and has health riders built into it because it is compliant with the applicable tax code.

Technically, there will be some de minimis effect. It’s essentially the same as any Section 125 deduction, pre-tax retirement deduction, etc. They all lower the adjusted gross income which lowers the amount of FICA tax contributions.

A bona fide wellness program with a high participation rate decreases the amount of workers’ compensation claims and as a result certain carriers can reduce your premium.

The first step is determining which employees meet the basic requirements: being full-time (35 hours a week), W-2 status, and are offered primary health insurance by the company. From that point, there is some basic information our enrollment team requests via secure links to determine how many employees are benefit-eligible. Eligibility beyond the factors mentioned normally hinges on how much each employee pays in taxes. They have to pay enough in taxes to fund the benefits and be compliant in the program. I’m not HIPAA certified so we’ll have the appropriate team members reach out to you regarding eligibility.

Every benefit-eligible employee is auto-opted into the program. They are sent robust communication over a thirty (30) day period informing them of how it works. They can opt-out via a QR code.

Absolutely not. We like to play nice with others and your company can keep its existing vendors and supplement your current offering with these benefits.

To keep it simple, both the employer and employee pay FICA taxes on each employee’s adjusted gross income. Not only does the employee save money, which is redirected into the compliant 213(d) benefits, but also the employer because they also do not pay the 7.65% on that pre-tax deducted amount. Even after factoring in the employer paying $40 per employee monthly into their wellness program, they still experience a net savings of roughly $500 per employee annually. For every 100 employees, you’re looking at roughly $50,000 savings directly to the bottom line depending on the tax status of your employees.