Services and Solutions

Section 125/105

Bene-Care is pleased to offer pre-tax programs to reduce the impact of rising health insurance premiums, higher co-pays and out-of-pocket expenses. Through the combined efforts of Bene-Care and EBS Benefit Solutions, our members may now choose from a variety of pre-tax programs, resulting in immediate savings for both the employer and employees.

What is a Premium Only Plan (POP)?

A Premium Only Plan enables employees to pay their portion of medical premiums with pre-tax dollars. Both employer and employee benefit from this type of plan:

• Employee reduces his/her taxable income,increasing take-home pay.
• Employer saves 7.65% FICA taxes on all employee contributions.

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account refers to the pre-tax benefit allowed under the IRS tax code Section 125/105. This code allows employee-participants to use pre-tax dollars to pay for out-of-pocket:

• Medical, dental and vision expenses
• Dependent care expenses

Similar to Premium Only Plans, the FSA benefits employees by reducing their taxable income and saves the employer FICA taxes on all employee contributions deferred into a Flexible Spending Account.

Bene-Care is pleased to introduce our Tri-Level benefit approach. Employers may select the benefit plan level most appropriate for the needs of their employees.

Employer Benefit Plan Levels

Employer introduces a Premium Only Plan and offers multiple medical plan options. Employee selects the medical plan that best fits their needs. Employee pays for their portion of the medical plan premiums (regardless of plan selected) with pre-tax dollars. Employer saves 7.65% FICA on all monies contributed to premiums by employees.

Employer introduces a Flexible Spending Account. Employees still have the advantage of pre-tax premium contributions but may also use pre-tax dollars to pay for out-of-pocket medical, dental, vision and dependent care costs. The employer saves 7.65% FICA on all monies contributed to the FSA by employees.

Employer elects to make voluntary contributions to employee Flexible Spending Accounts. This level encompasses both previous tiers, and allows the employer to make a contribution on behalf of each employee to help offset out-of-pocket expenses.