ArmadaCare’s insured solutions offer a more cost-effective way to reimburse for out-of-pocket healthcare expenses.

Why pay more? In the chart to the right, let’s say a family spends $7,500 on healthcare with their after-tax income. If the employer wanted to cover these expenses for their key talent or senior leaders, they could give a salary increase (Compensation) of $7,500. But that would cost the employer $8,500 with payroll taxes, which would turn into only $4,500 or less value for the employee because of taxes. To make sure the employee receives $7,500 value, the employer could gross up compensation (Grossed Up Compensation) to $12,500 to cover payroll and other taxes. That’s costing the employer an additional $5,000!

Or, an employer can offer ArmadaCare’s expense reimbursed insured solutions and gain a more cost effective and compliant mechanism for reimbursing healthcare expenses. These plans offer financial efficiency for both employers and employees. Under section 105(h) of the tax code, premiums are tax-deductible for the employer, and benefits are non-taxable for employees.* This translates into more take-home compensation than comparable salary increases or bonuses—enabling employers to boost compensation for key employees, spend less and help reduce out-of-pocket costs for select talent.

armadacare compensation chart
**These are general composite numbers only. Actual premium will be determined based on standard underwriting guidelines and characteristics of the group.

Why pay more? In the chart to the right, let’s say a family spends $7,500 on healthcare with their after-tax income. If the employer wanted to cover these expenses for their key talent or senior leaders, they could give a salary increase (Compensation) of $7,500. But that would cost the employer $8,500 with payroll taxes, which would turn into only $4,500 or less value for the employee because of taxes. To make sure the employee receives $7,500 value, the employer could gross up compensation (Grossed Up Compensation) to $12,500 to cover payroll and other taxes. That’s costing the employer an additional $5,000!

Or, an employer can offer ArmadaCare’s expense reimbursed insured solutions and gain a more cost effective and compliant mechanism for reimbursing healthcare expenses. These plans offer financial efficiency for both employers and employees. Under section 105(h) of the tax code, premiums are tax-deductible for the employer, and benefits are non-taxable for employees.* This translates into more take-home compensation than comparable salary increases or bonuses—enabling employers to boost compensation for key employees, spend less and help reduce out-of-pocket costs for select talent.

armadacare compensation chart
**These are general composite numbers only. Actual premium will be determined based on standard underwriting guidelines and characteristics of the group.