27 July 2017

How To Reduce Your Health Care Cost

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In addition to group health benefit information, a Flexible Compensation or Flexible Benefits Program can assist an employer with managing benefit costs, reducing employer’s taxes and offering new benefits without substantially increasing employer costs. A properly designed Benefit program can maintain a competitive employee benefits program, respond to varied needs of a diverse work force and increase employee awareness and appreciation of employer-provided benefits. Section 125 plans can be tailored to meet your organization's needs.  Whether it is a simple Premium Only Plan design, an FSA integrated Plan design or any other combination of allowed benefits, both employers and employees see tax saving benefits with a Section 125 plan. 

Flexible Spending Accounts   

Most people don’t realize just how much they spend each year on expenses like co-pays, insurance deductibles, prescriptions and other health-related items, but these types of expenses add up for your employees. By providing a Health Care Flexible Spending Account (FSA) as a component of your Section 125 plan, participants can save you up to 40% on the medical, dental and vision expenses you already pay.  This can add up to hundreds of dollars in savings a year for your employees.  Participants select the amount they would like to contribute for the year and their account is funded with a paycheck deduction that’s taken before any taxes are calculated.  Participants submit claims during the year as expenses are incurred - however it is important for participants to budget wisely as this plan is a "Use-It-or-Lose-It" plan. 

If you have young children, you’re aware of how much you spend each year on daycare. By providing a a Dependent Care Flexible Spending Account (FSA) as part of your Section 125 plan, participants can save you up to 40% on the child or elder care expenses. Participants elect the amount they would like to contribute for the year and their account is funded with a pre-tax paycheck deduction.  Taking full advantage of this plan can add up to savings equivalent to six weeks of daycare.  As with the Health Care Flexible Spending Accounts, participants must budget wisely as this is also a  "Use-It-or-Lose-It" plan.  

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