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Happy Chefs

AFFORDABLE HEALTHCARE BENEFITS
SECTION 125 PLAN

Recruit.  Retain.  Engage.
Section 125 Plan
Simply...  the lowest cost and compliant way to provide healthcare benefits to your employees and staff... period!
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NO NET EMPLOYER AND EMPLOYEE PLAN COSTS!!

NO KIDDING!

You and your employees deserve an innovative insurance product that helps them get healthy while providing BOTH your company and your employees a compliant way to fund current and future healthcare and benefits costs.

The Affordable Healthcare Benefits (AHBP) Section 125 Plan is unique...

  • The AHBP Section 125 is a fully insured insurance product that pays a monthly claim payment for each employee enrolled.  (This is an important differentiator and makes the AHBP Section 125 plan more attractive from many other Section 125 plan programs!)
  • The AHBP Section 125 Plan uses the tax code to bring benefits to the employer and their employees at little to no net cost.
  • The AHBP Section 125 Plan provides employers a significant tax benefit for each employee enrolled.
  • The employer's tax benefit covers ALL employer's net administrative costs, PLUS creates additional dollars added back to the employer's bottom line OR which they can use towards their current or future healthcare benefits costs.
  • ALL EMPLOYEES' COSTS ARE COVERED BY THE SECTION 125 PLAN DESIGN.  Employees' taxable income will be lowered as well lowering their tax liability, and most employees will see an uptick in their take home pay.
  • Employees will be provided additional healthcare and expanded wellness benefits to fill gaps and provide resources and tools to keep their own healthcare costs in check.  
  • The AHBP Section 125 Plan is fully compliant with the IRS and Department of Labor.
IMPORTANT: 
Be wary of any Section 125 plan that is NOT backed by an insurance claim payment and not listed as an insurance product with the state insurance board of the state in which they are being offered.  Such non-insurance plans are not seen as favorable by the IRS and have placed an employer at high risk for IRS scrutiny.  

EMPLOYEE HEALTHCARE BENEFITS
Provided By The AHBP Section 125 Plan
ALL EMPLOYEE COSTS COVERED!

For details on how this is compliantly accomplished, scroll further down this page.

Doctor Consultation (Covers Entire Family)

  • Speak to a doctor or specialist 24 hours a day

  • Get prescriptions filled or refilled

  • Unlimited consultations

$0 Consult Fee Or Copay

Mental Health Support (Covers Entire Family)

  • Speak with a Masters Level Clinician or licensed Psychologist 

$0 Consult Fee Or Copay
Prescription Drug Benefits

  • Rx Card (Generics Only)

  • CleverHealth Rx Prescription Cost Savings Search App

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Lesser of $30 Copay or actual drug cost

Included

Hospital Indemnity Benefits
  • Initial Hospital Admission Benefit

  • Daily In-Hospital Benefit

  • Emergency Room Benefit

  • Ambulance

$500/day; 1 day max.

$200/day; 30-day max.

$100/day; 1 day max.

$100/day; 1 day max.

Employee Healthcare Liaison
  • Assistance with medical procedure pricing
  • Out-patient care tools can be added to plan
100% Covered
Wellness Benefit Paid
$1,000/month; 12-month max.
Preventative Health Benefits
 

  • Cleveland Clinic Wellness Benefits Includes...

            Wellness Program

            Nutritionists, Weight Mgt., Smoking Cessation, 

            Diseases Mgt. and Much More

            Sleep and Stress Program

               Family Care Path Program

  • Screenings - Biometric, DNA

  • Health tracking software

  • Health Risk Assessments (HIPAA compliant)

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100% Covered
100% Covered
100% Covered
100% Covered
Financial Benefits
  • $0 Cost to access and use healthcare benefits
  • Section 125 tax advantage savings
  • Participation 'bonus' added to employees' paychecks 
  • Could put employee into a lower tax bracket creating additional financial benefit
  • Free plan tax consultation provided by BMD (www.bmdllc.com)

WAIT!

Included at $0 additional cost!!

ELIMINATE WORKSITE TOXICITY 

Work Shield provides the only full-service solution that partners with organizations to efficiently manage reporting, investigation, and resolution of workplace harassment, discrimination, and misconduct incidents.
NOW... LET'S LOOK AT HOW THE FINANCIAL BENEFITS ARE CALCULATED - FIRST, FOR THE EMPLOYEE AND THEN FOR THE EMPLOYER

Financial Benefits - Employee
Provided By The Affordable Healthcare Benefits Section 125

  • The employee gains the 7.65% on the salary reduction to pay the premium.

  • Employee saves their 7.65%, Social Security + Medicare on the total premium paid.

2 Accounting Transactions Happen...
Insurance Transaction

Plan Premium.

Section 125 

Tax Savings

= $267.50

  1. The plan premium is $1,000/month (BUT, do not be alarmed!)

  2. There is a corresponding claim payment paid of $850/month.

  3. $1,000 - $850 = $150 outstanding cost to be paid on the plan (the Section 125 Transaction will cover the remaining employee costs).

Section 125 Transaction

Indemnity 

Claim

Payment

  1. The entire plan premium of $1,000/month is run through the Section 125 of the IRS tax code.

  2. In our example, this creates an immediate tax savings of $267.50/month which is used to pay the outstanding costs left remaining by the insurance transaction.

  3. $267.50 - $150 = $117.50

  4. The net result is ALL plan costs are fully covered for the employee.  Plus, in this example, an additional uptick of $117.50 is added to the employee's month pay.

Note:  The above calculations are for example purposes only to demonstrate how the ABHP Section 125 compliantly adds benefits while creating tax savings.  Actual calculations may vary depending on each employee's tax status.  

Financial Benefits - Employer
Provided By The Affordable Healthcare Benefits Section 125

FICA Tax Benefits Extend to Employer
Section 125 Transaction

FICA Tax Savings to Employer

  1. Employer FICA Tax Benefits = $90/month per employee

  2. Employer Administration Fee = $30/month per employee

  3. Employer's net monthly administration costs are fully covered by the FICA Tax Benefits.

  4. $90/month FICA Tax Benefits (-) $30/month Administration Fee = $60/month per employee in net financial gain to employer ($720/year per employee in our example).

Note:  The above calculations are for example purposes only to demonstrate how the ABHP Section 125 compliantly adds benefits while creating tax savings.  Actual calculations may vary depending on each employee's tax status.  

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Case Study

For a recent case study on how Affordable Healthcare Benefits Plan helps employers save on MEC plan costs, click on the link below.

WHAT DID WE ACCOMPLISH?

We enhanced an employer's healthcare benefits package while adding dollars to their bottom line.
 
We provided the employer one of the best tools for recruiting, retaining, and engaging their employee population.

We provided extra dollars to the employer's bottom line that can be used to help finance and fund their current and future healthcare costs.

For a small employer (49 or less employees), we created a means for offering in high demand benefits at little to no cost to themselves or their employees!
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If you are an employer in need of meeting ACA compliance and you are currently paying out-of-pocket for your employees' MEC and MVP plan, or you are looking for a proven means of lowering your claims costs on a self-funded healthcare plan, the Affordable Healthcare Benefits Section 125 Plan is a great place to start.

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Affordable Healthcare Benefits Section 125 Plan puts tax dollars back into an employer's pocket that can be used to help an employer pay MEC/MVP costs, or help fund additional benefits to drive forward employee engagement, or simply put utilize as best seen fit.

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There is no other healthcare insurance plan in America quite like this and we hope you will take the time to learn more.

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Kitchen Staff
Schedule a review and proposal today...
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