Large Company Case Study
November 20, 2024
Large Company Case Study
A medical practice with 109 full-time employees offers a self-funded medical plan option, a Gold level PPO. The company pays 75% of employee and dependent coverage. There are also Dental PPO and Vision Plan options, of which, the company pays 100% of employee coverage. Employees can buy up to add dependent coverage for these options.
THE CHALLENGE
The 38 physician owners were looking for alternative compensation strategies and creative ways to recruit physicians to their practice.
THE SOLUTION
The practice elected to add ExecSelect, a tax-advantaged, supplemental health and wellness program that provides reimbursement of eligible out-of-pocket medical expenses incurred by the physicians and their dependents. By adding this unique program, the practice enhances its benefit offerings to the physicians and its goal of supporting the overall wellness, while gaining a competitive edge in recruitment efforts.
The chart above shows claim volume by benefit category. The table below estimates compensation value if these claims were funded with after-tax dollars. We assume a 40% tax rate that includes both corporate payroll tax liabilities and individual income tax.
Offering a robust healthcare benefits package to your key employees is important because it shows them you are invested in not only their overall health, but their future. Help your small business clients think out of the box with an excepted benefits plan.