We understand the skepticism. It’s natural to question something that offers substantial benefits without cutting into employee paychecks. However, EHP leverages IRS Section 125 Cafeteria Plans and Affordable Care Act (ACA) regulations to make this possible. It’s a legitimate and innovative solution.

No, EHP is designed for seamless integration with your current benefits offering.

• Employees must be W-2
• Employees must be full-time (at least 30 hours per week)
• Employees must have health insurance because the program is an Integrated 105 plan. (4980D) (If an employer already has a health plan in place, great, you may keep what you have. If an employer does not have a health plan in place, one will be provided as part of the Essentials Health Plan package at no additional cost).

EHP is a Self-Insured Medical Reimbursement Plan (SIMRP) and was purposely created, fully researched, and found compliant with IRS 213(d), 106(a), 105(b), 1.105-11(i), and 104(a)(3) codes, and all applicable IRS memos, ERISA regulations, HIPAA, and the ADA. Medical Services Are a Key Component EHP is always paired with an ACA-approved medical plan to make an integrated 105 plan.

Deduction of The Plan Is Pre-Tax Eligible The deduction of plan cost from an employee’s gross wages is addressed by IRS Codes 106 (a). The Office of Chief Counsel Internal Revenue Service Memorandum (Number: 201703013, Dated: 1/20/2017) states: “The value of coverage by an employer-provided wellness program that provides medical care (as defined under §213{d)) is generally excluded from an employee’s gross income under §106(a). The pre-taxing of this deduction made possible under a Self-Insured Medical Reimbursement Plan and a Cafeteria Plan (§ 125) creates the reduction of taxable income, generating savings for the employee and the employer.

It’s simple! Schedule a time to speak with one of our agents.

• Access to doctors, urgent care and even specialists
• Telemedicine 24/7
• Dental / Vision.
• Accident
• Hospital Indemnity
• Universal Life

The full list of benefits will be included in your offer once you send us a census.

• No. As a compliant plan, we must set an enrollment period for your company, which will be scheduled on the 1st to 10th day of the month after you accept the offer, however offers accepted after the 15th of the month will be scheduled for the 2nd month following. New employees can still join the plan when they are hired.

• Yes, however, if you are trying to avoid the tax penalty for not providing health insurance to your employees, the MEC plan only covers the larger of the 2 penalties. Ask your agent how to cover the smaller of the 2 (if required in your state based on company size).

Your paycheck total amount will not change and may even increase by a nominal amount. The regulations governing cafeteria plans allow for a pre-tax contribution and a post tax premium for all the included benefits. The tax savings from this transaction allows for your benefits to be delivered with no net cost. Government regulation requires full transparency of this transaction even though the net change is nominal.

As explained above, there is a cost for all the items provided by EHP, however the cost comes out of tax savings, so there is no net cost to you.

Because the EHP follows all regulations and ACA rules unless an employee experiences a Qualifying Life Event, an employee who enrolls in EHP will not be eligible to make changes until the end of the plan year.

If an employee’s primary health plan is ACA compliant, there will not be a need to add the MEC portion from EHP. Those benefits will instead be replaced by other supplements the employee will find beneficial or be placed in the Universal Life plan.

Every month, employees will receive push notifications (messages and text reminders) and emails providing them with important information about their plan benefits and information intended to be used to help improve their health.

If you do not use the service even once the entire year, all deductions will become taxable. For this reason, we recommend you take the health assessment in the first 30 days, fulfill your yearly obligations and start your journey to a healthier lifestyle. Of course nothing beats the advice of a doctor, so we hope you will also schedule your free yearly physical at the very least.