Preventative Care Management Program (PCMP)
PCMP is a workplace program that provides employees the opportunity to upgrade their benefits package with an Affordable Care Act (ACA) compliant wellness program while reducing both the employer’s and employee’s tax burdens.
KEY PLAN BENEFITS
PCMP enables employers to reduce their payroll taxes while offering their employees valuable Wellness and Supplemental Benefits with no net out-of-pocket cost to the employer or employee.
$650-$681 FICA Tax Reduction per participating employee per year
Increased employee retention, loyalty & productivity
Immediate financial impact on the bottom line
Reduction of claim costs averaging $1,400 over a three-year period
Operational within 30-45 days
No Out-of-Pocket wellness & supplemental benefits
Increased mental and physical health
Healthier lifestyle
Supplemental Benefits Universal Life, Short-Term Disability, Accident Coverage, and Critical Illness Coverage
The Preventative Care Management Program (PCMP) is a unique and compliant preventative care management program that offers a range of benefits. It combines a Section 125 Cafeteria Plan and a Self-Insured Medical Expense Reimbursement Plan (SIMERP). The program ensures compliance with IRS regulations, specifically focusing on 213(d) compliant benefits. By participating in the PCMP program, employees can receive reimbursements for eligible medical expenses on an after-tax basis. The program is structured to align with tax guidelines and maximize tax savings for both employers and employees. It requires a plan document, a Section 125 Plan, and a SIMERP to create a compliant and effective wellness program. The PCMP model has undergone thorough review by CPAs and ERISA attorneys. Please note that this information is confidential and intended only for authorized individuals and entities.
EMPLOYER
Lower payroll taxes/increase working capital
Employers save on average $650 in payroll taxes per W-2 full-time employee annually with no out-of-pocket costs. These net savings increase working capital that can be used to sustain and grow an employer’s business. “When you create an environment of psychological safety and well-being, you create well-being capital, which boosts performance in healthy ways and enhances your bottom line. We are beginning to see data collected to validate the well-being capital model”. “Most adults spend at least a third of their employable years at work. The mental health challenges create a cost for employers. Our global survey finds that employees experiencing at least one mental health and well-being challenge (nearly three in five) report worse employee experience metrics. They are three times more likely to experience toxic behaviors and four times more likely to want to leave their organization.”
EMPLOYEE
Better benefits with no out-of-pocket and a healthier life
Benefits are expensive. Employees gain additional Wellness Benefits, enabling them to utilize telehealth, marriage counseling, weight loss/diabetes counseling, and dependency counseling. Employees can also receive Supplemental Benefits such as Universal Life, Short Term Disability, Accident Coverage, and Critical Illness Coverage. All the Wellness and Supplemental Benefits are provided to the employee with no out-of-pocket costs. ”A majority of employees report challenges accessing mental healthcare. The most commonly reported barriers are lack of insurance coverage, difficulty determining covered services, not knowing which resources are available, difficulty finding providers, and long wait times to get appointments.”
GOVERNMENT
Healthy workers and citizens and collection of tax dollars
The government is incented to provide a tax break to offer Preventative Care Management. “A long-term comprehensive approach (to mental health) is likely correlated to organizations gaining the full potential benefits from improved employee health. If individuals, businesses, and countries widen their understanding of health, they may reap the benefits of gains in life expectancy and quality of life.” “Potential measurable effects of enhanced mental health supports include fewer missed workdays and increased return to work rates. Among employees surveyed, those with anxiety or depression report missing, on average, roughly six times more workdays per year than individuals without a mental health condition”. Wellness and Supplemental employee benefits should aid the government in achieving more productive employees and citizens and more stable and possibly a hire tax base from both employees and their employer on a state and federal level.
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The PCMP program offers a significant cash flow advantage by allowing employers to hold plan contributions until the bill is due on the 12th of the following month, unlike traditional plans that require advance payment. This "billed-in-arrears" structure gives businesses more working capital flexibility, particularly benefiting those with tight cash flows. Employers can use retained funds for other operational needs, enhancing financial health and maximizing liquidity alongside the program's tax savings and ACA compliance benefits.
A strong benefits package is a crucial factor in attracting and retaining top talent. By offering comprehensive and affordable health coverage through the PCMP program, employers can significantly improve their hiring and retention efforts. Employees are more likely to stay with companies that prioritize their well-being, and the appeal of no out-of-pocket benefits, tax savings, and ACA compliance adds to the attractiveness of the workplace. This not only boosts employee satisfaction and loyalty but also reduces turnover, saving businesses the time and costs associated with recruitment and training.
The PCMP program helps employers manage healthcare costs by reducing the reliance on primary insurance plans. By offering no-cost benefits and comprehensive coverage options outside of the primary insurance, employees can access essential services without impacting their primary plan's utilization limits. This shift not only alleviates the strain on primary insurance but also minimizes claims, potentially leading to lower premiums and reduced out-of-pocket expenses. Employers benefit from a more cost-effective approach to healthcare coverage while employees enjoy greater access to services, creating a win-win situation for both parties.
The PCMP program allows employers to significantly cut costs on add-on benefits by bundling essential services within the core plan at no additional expense. This approach eliminates the need for separate, costly benefit add-ons, making it easier and more affordable for businesses to offer a comprehensive benefits package. With reduced expenses on supplementary benefits, employers can reallocate funds to other critical areas while still providing valuable coverage options that enhance employee satisfaction. This cost-effective strategy not only saves money but also simplifies benefit management, helping employers maximize the value of their investment.
