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 Preventative, Wellness and Supplemental Benefits with no net out-of-pocket cost to the employer or employee.
$620 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 FSA Card, 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 $620 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.
EMPLOYEE
Better benefits with no out-of-pocket and a healthier life
Benefits are costly, but employees receive added Wellness Benefits like telehealth, mental health support, prescription coverage, and an employee assistance program. They also get Supplemental Benefits, including FSA cards, life insurance, short-term disability, accident, and critical illness coverage — all at no out-of-pocket cost.
GOVERNMENT
Healthy workers and citizens and collection of tax dollars
Wellness and Supplemental employee benefits support healthier, more productive workers and help build a more stable, potentially higher tax base. By reducing reliance on government insurance programs, they also help lower public healthcare costs.
The PCMP program provides a strong cash flow advantage by allowing savings to accrue in the account with each payroll run until the bill is due 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.
