Expense reimbursed insurance is a type of supplemental health insurance that can be layered on to primary plans to provide additional coverage. While these plans aren’t as well known in the supplemental health insurance market, they are gaining prominence. In fact, ArmadaCare has a suite of three expense reimbursed insured plans with different coverage options.
Unlike your typical indemnity insurance plans (typically referred to as voluntary insurance), expense reimbursed insurance has many unique advantages for the employers and enrolled employees.
Expense reimbursed insurance qualifies as an excepted benefit, which means that ACA nondiscrimination and other rules don’t apply. In other words, coverage can be offered to select employee classes based on the employer’s needs.
This makes it possible for companies to find the right balance between controlling benefit costs and offering attractive benefit packages.
Retain and Recruit
Another great aspect of expense reimbursed insurance is that it is a compelling recruitment and retention tool. Since it can be carved out by class, employers can use it as an incentive or reward just for those difficult-to-recruit-and-retain positions.
Tip: You can use ArmadaCare’s product suite to create an incentive program to promote longevity with a company. As tenure increases, employees can be offered a higher plan level.
Expense reimbursed insurance is actually a more powerful and financially-efficient way to reward employees. Since premiums are not subject to payroll taxes, it will cost the company less than a comparable bonus.* The plans also provide enrolled employees with tax-free reimbursements, which will provide them with far more value than a one-time bonus.*
Flexibility to Adapt
Your typical supplemental voluntary plan has narrow coverage with disease- and event-driven conditions. Expense reimbursed insurance, on the other hand, doesn’t have those types of condition limitations. Instead, expense reimbursed insurance provides coverage for both routine and unexpected health expenses, so that coverage is available when needed.
ArmadaCare’s plans range from $5,000 to $100,000 in annual coverage so it’s possible to create the right benefit structure that the company can afford and employees value. Register for this live webinar to learn more about ArmadaCare’s suite of products and how they can best serve you.
*This is not local, state or federal tax advice as each person and company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.