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Frequently Asked Questions
Answers To Frequently Asked Questions
How is that possible?
The Affordable Care Act was established in 2012 and its primary purpose was to make health insurance/preventative care available to all Americans. Encompassing Health utilizes Section 125 and the Affordable Care Act. Section 125 is a law established in 1978 that allows employees to pre-tax health insurance premiums (amongst other things).
What are the Benefits?
Employees:
● Hospital Indemnity Plan
● Increased take-home pay
Employees + Family Members:
● Unlimited Virtual: Primary Care, Urgent Care, Behavioral Health, & Dermatology
● Health Risk Assessments & Metabolic Testing
● Free Rx Program (2,900 Prescriptions)
● Savings Network: Dental, Vision, Hearing, Imaging, Diabetes, Televet, Fitness & Entertainment
Employers:
● A tool for Recruitment and Retention
● FICA Tax Savings (Averages $700 Per Employee Annually)
How does Enrollment Work?
Enrollment in Encompassing Health works differently than typical health insurance, the administration burden is minimal due to the fact that enrollment takes place through an integration with payroll. This program works on an Auto-Enrollment Basis, meaning qualified employees will be automatically enrolled into one of the 6 plans based on their wages and tax deductions, with the option to opt-out. This is not something that the employer or employee chooses. The plan that an employee is placed in is selected by our Tax Analyzer.
How do Employees see an Increase in Take-Home Pay?
Employees will see two new line items added to their paychecks, the EH pre-tax premium and the EH claims payment. The combination of the two results in a net positive take-home pay for the employee. The EH claims payment is made on a pay period basis for participation in certain preventative care/health management activities guided by a medical professional (i.e. using the benefits included in the plan). One of the ways to satisfy this claim is by receiving a Health Coaching Newsletter from Encompassing Health’s team of medical professionals via email or text message. These health coaching newsletters are automatically sent out every single pay period to employees. With EH only one of two things can happen, an employee sees an increase to their take-home pay by participating or no change at all to their take-home pay by opting out.
How does the Employer see FICA Tax Savings?
The by-product of reducing the employee's taxable income is that the Employer’s FICA tax contribution is also reduced. The employer is still paying their ordinary 7.65% contribution, but because the employee's taxable income has been reduced they are paying that same 7.65% on a lesser amount.
How is Encompassing Health Paid For?
While there is no net cost to the Encompassing Health Program, there is still a cost. The cost of the benefits are paid for by the tax savings that the Encompassing Health Program generates for the employees resulting in a net increase in take-home pay. The cost of administration is paid for by the tax savings that the Encompassing Health Program generates for the employer.
No money is taken out until the tax savings are realized.
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The information contained on this website is for general information purposes only. While we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance on this information is therefore strictly at your own risk.