To learn more about the program, we invite you to watch these educational videos. If you are interested in furthering the conversation, click on the "Get Pre-Qualified" link.
What is the biggest difference in your plan vs others?
Most other programs are structured with a fixed indemnity product as their wellness plan, which the IRS has deemed taxable. These plans do not follow the guidelines outlined in IRS Memo 201703013.
Our program is fundamentally different. We do not utilize a fixed indemnity product. Instead, we seamlessly integrate a wellness plan with a medical plan, ensuring full compliance with IRS regulations and providing significant benefits to both employees and employers.
When it comes to HIPAA & ADA compliance, does your plan differ from the others?
Many programs include an underwritten insurance plan or fixed indemnity within the program which could negate their compliance. This can also lead to selection bias and/or discrimination.
Achieving a specific health-related goal is never required in our program and our enrollment process never requires us to intrude into employee medical records. This also prevents discriminations among employees.
When it comes to how the employee allotment from tax savings is used, how does BizPower Benefits differ from other plans ? Why does it matter?
Many programs require that employees complete specific activities to maintain their eligibility, which can invalidate the pre-tax savings. In the case of fixed indemnity plans, using tax savings to purchase insurance is non-compliant.
Our program is participation-based and does not require specific activities for continued eligibility. Participation is measured through points earned annually. According to the tax code, the tax savings must be reduced to a 'de minimis' amount. BizPower Benefits does not utilize fixed indemnity products. The employee allotment is used to purchase new supplemental benefits, without reducing the employees take-home pay.
How does the design and
structure of
BizPower
Benefits differ from others?
Many programs are non-compliant because they fail to include one of the three required documents. These documents are a wellness plan, a medical plan, and a SIMRP.
Our program integrates a wellness plan and a medical plan with our SIMRP to fulfill the document requirements and maintain compliance.
What happens if an employee
changes their
withholdings or
has a change in pay?
Some plans never reassess the employee data, causing various, and in some cases highly expensive errors.
We regularly reasses the employee data and make changes accordingly
All of the IRS memos and articles refer to "fixed indemnity plans" and how they are non-compliant. How is yours different?
A wellness program that incorporates a fixed indemnity plan may be non-compliant because it attempts to generate tax savings from one insurance product to fund the purchase of other insurance products, which can result in "double-dipping.
Our program does not include a fixed indemnity plan. There is no "double-dip."
Is the program considered a qualified
healthcare program as required?
Most programs do not include qualified healthcare, therefore they do not qualify as an employee health plan according to the Department of Labor.
Our program qualifies as an employee benefit and welfare program (a health plan) in that it not only provides a Health Risk Assessment (HRA) and Health Risk Profile (HRP), it provides personalized qualifying healthcare based on that individual’s risk. Specific personalized care is a key component of our program.
Are there any specific actions my employees need to take to ensure they remain compliant within the program?
Many programs require the employee to perform a specific activity each month, thus negating the pretax savings. Many of the IRS memos and articles focus on these activity-based plans where specific activities trigger reimbursement.
We use a participation-based program that does not rely on any specific activity to remain eligible. Rather, our model is calculated in points earned annually. If the employee does not participate or fails to achieve their points in a plan year, all or a portion of the benefit is taxable. We provide resources that make achieving the point requirements simple and easy.
