Overview of the HealthIER Plan

he cost of health care coverage seems to know no bounds.  Year-to-year premium increases are often dramatic.  In an effort to attract and retain employees, employers often absorb the larger portion of these increases, passing through as little as possible to their employees.  Even though employers are typically able to deduct the cost of group medical coverage as an allowable business expense, they continue to see erosion in the affordability of quality coverage.  Despite the “before tax” treatment of group health care expenses, drastic measures—such as cost shifting, benefit reductions, and budget reallocations—are becoming increasingly necessary.   Simply put, the “old way” is giving way.  “Managed Care” has largely run its course and has proven relatively ineffective in the face of health care reform.  A new value-based system is desperately needed, whereby employees are empowered to help employers contain costs and maintain benefit levels.  Education and incentives to maintain wellness are the keys to make a successful transition to this “new initiative”.

The HealthIER Plan:  The Next Era in Health Plan Cost Control

• The Employer, working in conjunction with Paradigm, pre-determines the expected out-   of-pocket medical care expenses the employees and their dependents will incur.

• The Employer establishes the HealthIER plan to solely reimburse the employees for eligible medical care expenses that they and their eligible dependents are already incurring.

• The Employer decides to contribute less to the “old” traditional healthcare programs in order to fund the “new” HealthIER Plan.

• The Employee bears the cost of his or her group health benefits coverage that the employer used to pay.

• The Employee can elect to pay for this coverage with a Section 125 Cafeteria Plan so they can receive the “pre-tax” treatment of plan contributions under the Cafeteria Plan.

 The Employee wins:

• Free membership for the Employee and their eligible dependents with the KeepSafe Program and the Family Peace Mind Benefits it offers.

• Free Rx Benefits.

• Free Chiropractic Benefits.

• Free Vision & Hearing Benefits.

• Free Vitamins & Nutriceuticals Program.

• Free Alternative Medicine Program.

• Free Medical Supplies Program

• Tax-free health care expense reimbursement.

• More available dollars each and every pay period.

• The employer realizes substantial savings in Medicare and FICA taxes, because premiums paid under the Section 125 Cafeteria Plan reduce the gross wages payable.

• The employer sees additional savings by diminishing or eliminating its contribution to group health coverage and paying a less costly medical expense reimbursement.

• The HealthIER Plan is a separate Accident & Health Plan so all benefits provided to the employees for eligible medical care expenses are deductible as business expenses for the Employer.

• The contributions made via a Section 125 Cafeteria Plan are deemed to be Employer contributions for tax purposes.  The Employer retains the business deduction for the monies paid via the Section 125.

• The HealthIER Plan results in hard dollar savings directly to the employer’s bottom line.  Even after fees, the employer puts additional money into its budget. 

The HealthIER Plan is a turnkey methodology that allows the employer to maximize savings by trading the HealthIER Plan Reimbursement for the unrealized deduction credit that the employee incurs on a wide variety of qualified medical care expenses. 

You may have read, over the past several months, about Health Reimbursement Arrangements or HRA’s.  The IRS has come out with guidance that is causing reimbursement plans to proliferate.  HealthIER is the ONLY method in which you can receive guaranteed savings without assuming any new risk.