FLEXIBLE BENEFIT PLANS

PROVIDE THE COVERAGE THAT IS NEEDED WITHOUT EXTRA COST

What is the Advantage of Flexible Benefit Plans? With flexible benefits, employees are able to choose the benefits they want/need and the level of coverage and cost that is best suited for them.

Flexible Benefit Plans aim to evolve from the traditional benefits packages that used a predefined (one size fits all) package. Flexible Benefit Plans and additional living benefit solutions allow employees to select a plan and coverage with benefit options that are catered specifically to their needs and the needs of their family. Employees use credits or an allowance that is allocated by the employer to purchase their benefits. Employees can choose their benefits and can reduce or opt out of coverage they don’t use and enhance coverage they do need to best utilize their benefits and the employers resources.

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HOW DO FLEXIBLE BENEFIT PLANS WORK?

Flexible benefit plans provide employees with the ability to choose the benefits they want or need, and refrain from the ones they don’t. An employer provides a number of benefits, and employees can choose which ones apply to them, creating a comprehensive benefits package tailored to their unique needs.

Flexible benefit plans often include health insurance, retirement benefits,  and reimbursement accounts. Employees can use to pay for out-of-pocket health or other family care expenses instead of using their present benefits. In a flexible benefit plan, employees contribute to the cost of their benefits or coverage through their payroll deduction and their before-tax income, reducing the overall cost and contribution of the employer. Flexible benefit expenses are paid with pre-tax income which lowers the taxable income of the employee and the expenses are a tax deductible expense.

EMPLOYER BENEFITS

  1. The employer controls the flexible benefit plans cost, setting the limits so there are no surprises.
  2. Flexible benefit plans are part of HSA (Health Spending Accounts) and are fully customizable with a pre-set dollar value.
  3. Employers receive a 100% business deduction, saving the employer and employees money.
  4. Improved employee happiness and awareness knowing they have coverage suited to their needs and the needs of their families. 

EMPLOYEE BENEFITS

  1. Employees choose the benefits they need without paying for the ones they don’t.
  2. Employees have full control of their plans and their benefits.
  3. Employees receive valuable coverage.
  4. Benefits are received on a tax-free basis, saving them money.
  5. Employees can carry over leftover benefit credits into the account for next years plan.
  6. Employees get premium benefits and premium coverage.

CAFETERIA BENEFIT PLANS

A cafeteria is where individuals select their food of choice, this is the same concept as cafeteria flexible employee benefit plans.

Cafeteria benefit plans allow employees to choose from a number of available benefits to design a plan that is best suited to their unique needs. Cafeteria plan options may include health coverage, life, disability or accident insurance, cash incentive benefits, or retirement plan contributions. This plan is popular among large organizations with a high number of employees.

FLEXIBLE SPENDING ACCOUNTS

Flexible Spending Account’s (FSA) are savings accounts that are tax-free. The FSA is established by the employer to assist employees and their dependents with their medical expenses and other benefits. FSA plans empower the employee by allowing them to contribute pre-tax dollars towards their medical and benefits expenses such as insurance premiums, medical costs, day care fees, or private school and kindergarten expenses. 

  1. Premium-only plans: set aside funding to pay medical and life insurance premiums.
  2. Unreimbursed expense plans: set aside funding for health care expenses that are not covered by insurance.
  3. Dependent care reimbursement plans: set aside funding for dependents and children for day care and other schooling costs.

TRADITIONAL & FLEXIBLE HYBRID PLANS

Transitioning a benefits plan from a traditional plan to a flex plan can be a tedious process and can create a backlash from employees worried about potential loss of benefits. Many employers prefer to keep the traditional plan while providing options for employees to either increase their coverage. Luckily at Puhl Employee Benefits we customize our benefit plans around the needs of you, your organization and your employees. Contact us today for details on our flex/traditional benefit packages.