Tax Savings Program
In this post healthcare reform age, employers and employees both are looking for solutions to the rising costs and limited options for comprehensive healthcare coverage. The magnitude of the problem was recently highlighted by a Harvard study that found as many as 62 percent of bankruptcies were the result of the financial burden caused by uncovered medical expenses, even for those with medical insurance.
The Essential Strategies Plan, known as BeneFlex, offers an extra layer of insurance protection in areas that health insurance alone often fails to provide. BeneFlex is a voluntary program which creates both employer and employee tax savings by allowing higher contributions than standard Health Savings Accounts and Flexible Spending Accounts.
Employers save a significant amount of money on payroll taxes, with average savings in the range of $400 per employee annually. BeneFlex provides enrolled employees with allowances for deductibles,co-insurance, co-pays, dependent care and other out-of-pocket expenses. The tax savings form a benefit bank used to purchase supplemental insurance that covers these out-of-pocket expenses, replaces lost wages and pays other expenses not covered by major medical plans. BeneFlex has proven popular with employees, with an average participation rate of over 90%.