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Group Benefits
Term 2 Keep offers a complete line of insurance and group benefits for employers ranging from group health insurance to life and FSAs.
Many businesses today face challenges in attracting and retaining top employees. As a business owner, you know the importance of employee benefits and their contribution to your business success. We will work with you to develop a program tailored to your individual circumstances. These products and services are designed to provide solutions to your personal and business financial needs.
Group Plans We Offer
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401(K) plans are tax-deferred retirement savings plans for employees. The employer sets them up, and each company has a slightly different 401(k). They are part of a family of retirement plans known as "defined contribution" plans—the amount contributed is defined by the employer or the employee.
When you join a 401(K) plan, you tell your employer how much money you want to contribute to your account. This amount is deducted from your salary before taxes are applied, so you pay less income tax. More importantly, the money is deducted even before you have received it, making it the easiest savings plan to contribute to. Your employer may match a portion of your contribution.
The money is invested by the plan administrator (on your behalf) in mutual funds, bonds, money market accounts, etc. You decide the mix of investments. They usually have a list of investment vehicles you can choose from as well as some guidelines for the level of risk you are willing to take. Since the plan is an incentive for retirement savings, there is one condition: if you withdraw the money before you are 59½ years old, you will have to pay tax as well as a 10% penalty fine to the IRS.
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Did you know over 40% of people receiving long-term care services are under the age of 65? This is one of the reasons why long-term care insurance has become a frequently requested employee benefit. Employer-based long-term care insurance is an essential part of a comprehensive benefits package.
Long-term care is the type of care received either at home or in a facility, when someone needs assistance with activities of daily living, such as bathing and dressing due to an accident, an illness or advancing age.
Rising life expectancy means that the potential need for "long-term care" grows with every passing year of your life. The likelihood is that you or a member of your family will need long-term assistance due to a prolonged illness, a disability, or general deterioration of your health and ability to perform routine daily activities.
Most long-term care expenses are not covered by Social Security or Medicare, Medicare Supplement ("Medigap"), or private health insurance. Medicaid pays for nearly half of all nursing home care, but you must meet federal poverty guidelines and may have to spend down most of your assets on health care.
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A health reimbursement arrangement (HRA) is a tax-advantaged benefit that allows both employees and employers to save on the cost of health care.
HRA plans are employer-funded medical reimbursement plans. The employer sets aside a specific amount of pre-tax dollars for employees to pay for health care expenses on an annual basis. Based on the plan design, HRAs can generate significant savings in overall health benefits.
The primary requirements for an HRA are that (1) the plan must be funded solely by the employer and cannot be funded by salary reduction, and (2) the plan may only provide benefits for substantiated medical expenses.
HRAs may be designed in many fashions to suit the specific needs of the employer and employees. It is one of the most flexible types of employee benefit plans making it very attractive to most employers.
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Group dental insurance is one of the benefits most requested by employees. Many employers provide dental insurance for their employees, but a growing number of employers are offering this as a voluntary benefit that is paid 100% by the employee through payroll deductions. Most dental plans provide full coverage with a 100% benefit for preventive exams & cleanings, an 80% benefit for basic services such as fillings and root canals, and 50% benefit for major services and prosthodontics such as dentures, crowns, etc.
Some dental insurance companies provide a dental buy-up plan which allows the employer to purchase a base plan, while employees purchase additional benefits as needed. Another newer option for dental insurance is a dual option plan that allows each employee to choose a basic plan or a more comprehensive plan based on his needs. This is a voluntary benefit, which means that each employee gets the coverage he needs for himself and his family.
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A health savings account (HSA) helps you save money on health care. By making you a part of the medical services decision process, health savings accounts are designed to help you manage medical expenses and reduce the continuing raising of health care expenses.
Equally as important, the money you save remains part of your retirement account, even if you leave your present employer. You can also save the money in your account and grow your account through investment earnings. Funds in the account can grow tax-free through investment earnings, just like an IRA. In short, if you don’t use all the money in your HSA for medical expenses, it can accumulate as tax-free savings for your retirement. One final benefit, HSAs can pay for many more procedures than were ever allowed before by government sponsored programs. Health Savings Accounts help you save money on unavoidable expenses and build investment savings for your retirement.
Account funds are used to cover medical expenses before the plan deductible has been met. Unspent account balances accumulate and accrue interest from year-to-year. Unlike amounts in Flexible Spending Accounts that are forfeited if not used by the end of the year, unused funds remain available for use in later years. Once the health plan’s annual deductible has been met, coverage resembles conventional insurance, typically in the form of a preferred provider organization (P
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Long-Term Disability (LTD)
In the event that an accident or illness prevents an employee from working for an extended period of time, the financial impact can be severe for the employee and employers. Long term disability (LTD) insurance is designed to help cover the employee's expenses while their regular income is interrupted. Flexible plan design options and benefit alternatives are available to meet specific needs. This valuable protection is available with low-cost, tax-deductible premiums.
Short-Term Disability (STD)
A steady income is essential for most people. If an accident or illness interrupts that income, it affects both the employee and employer. Short term disability (STD) insurance is designed to replace a portion of the wages lost when a short term disability occurs. An affordable, flexible short-term insurance plan can provide needed benefits to both the employer and employee.
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Create Tax-Saving Opportunities for You and Your Employees
Flexible spending accounts, or FSAs, will allow employers and employees to expand the tax-saving benefits of a premium only plan. They also enable companies to provide superior health care benefits, increasing employee satisfaction, and retention.
Flexible spending accounts allow your employees to set aside a portion of their paychecks for health care and dependent day care expenses before taxes are calculated. The more they take advantage of this benefit, the less you'll pay for payroll taxes, including Social Security and Medicare. Depending on your state, a flexible spending account program may also reduce the cost of your workers' compensation insurance.
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A group vision insurance plan is especially attractive for employers because it is inexpensive to offer, yet it's another employee favorite. This is a separate plan that provides coverage for eye exams and/or for frames, lenses and contact lenses.
Many times the basic health insurance plan may provide for routine eye examinations; however, it will usually not provide any benefit for frames, lenses or contact lenses. This is where a separate group vision benefit would be used.
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If you have a partner in business, you have a need for insurance so that in the event of death or disability, you can buy out your partner's interest without having to take out a loan or liquidate company assets. This is also important where children and taxes are involved.
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In today’s environment, offering the right health insurance benefits can be a challenge. You want to provide the best possible plan for your employees yet it must also be cost efficient for your business.
Term 2 Keep is committed to health insurance for both our commercial customers, who need group coverage for their employees, as well as the individual or family that needs coverage.
With the changing face of health insurance in today's market, we are staying abreast of the latest developments that will affect the coverage you expect as well as the cost impact upon you.
We have the wide array of health insurance options available in our area, and we will always present to our customers the best options at the best price available.
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A health savings account (HSA) helps you save money on health care. By making you a part of the medical services decision process, health savings accounts are designed to help you manage medical expenses and reduce the continuing raising of health care expenses.
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It’s no secret that providing traditional group health benefits to employees can be complicated and costly. Health Reimbursement Arrangements (HRAs) have helped to address the situation and control costs; however, when the Affordable Care Act (ACA) became law in 2010, the ability for businesses to offer HRAs to employees for individual policies became limited. The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) came later in 2016 but still has its roadblocks by only allowing businesses with less than 50 employees to qualify and limiting how much employers can reimburse employees each year.
In the summer of 2019, an Executive Order was released to offer more flexibility and budget control for businesses and organizations of all sizes through the Individual Coverage Health Reimbursement Arrangement (ICHRA), an HRA option first offered on January 1, 2020.What is an ICHRA?As briefly mentioned above, an ICHRA is an ACA-compliant federal ruling that allows companies to reimburse employees for their individual health insurance through a monthly, tax-free allowance.
With ICHRAs, you can choose how to distribute your funds, whether on an individual basis or based on various classes (i.e., full-time, part-time, and seasonal employees, geographical location, etc.).
Any business, non-profit, organization, etc., with at least one W-2 employee that does not already offer a QSEHRA or an Excepted Benefit Health Reimbursement Arrangement (EBHRA) can offer an ICHRA to their employees.
Employers cannot offer both an ICHRA and a QSEHRA because the former is considered a group health plan, and thus, is not compatible with the latter. An ICHRA and an Excepted Benefit Health Reimbursement Arrangement (EBHRA) can both be offered by the same employer, but not to the same class of employees. This is because EBHRAs must be offered with a traditional group plan.
Unlike the QSEHRA contribution limitations, the ICHRA offers businesses the flexibility to choose how much they contribute to individual monthly premiums and out-of-pocket medical costs for each 12-month plan year. There is neither a minimum nor maximum annual contribution requirement you have to meet with this type of HRA nor a minimum participation requirement.
What is an ICHRA?
As briefly mentioned above, an ICHRA is an ACA-compliant federal ruling that allows companies to reimburse employees for their individual health insurance through a monthly, tax-free allowance.With ICHRAs, you can choose how to distribute your funds, whether on an individual basis or based on various classes (i.e., full-time, part-time, and seasonal employees, geographical location, etc.).
Any business, non-profit, organization, etc., with at least one W-2 employee that does not already offer a QSEHRA or an Excepted Benefit Health Reimbursement Arrangement (EBHRA) can offer an ICHRA to their employees.
Employers cannot offer both an ICHRA and a QSEHRA because the former is considered a group health plan, and thus, is not compatible with the latter. An ICHRA and an Excepted Benefit Health Reimbursement Arrangement (EBHRA) can both be offered by the same employer, but not to the same class of employees. This is because EBHRAs must be offered with a traditional group plan.
Unlike the QSEHRA contribution limitations, the ICHRA offers businesses the flexibility to choose how much they contribute to individual monthly premiums and out-of-pocket medical costs for each 12-month plan year. There is neither a minimum nor maximum annual contribution requirement you have to meet with this type of HRA nor a minimum participation requirement.
How does ICHRA work?
Under an ICHRA plan, employers determine each employee’s or class’ reimbursement allowance. Employees then opt to purchase an individual health plan of their choice (ICHRAs can also reimburse Medicare plans, either Part A and B or Part C) and pay for their own insurance premiums and medical expenses.Employees can submit claims for their medical costs like copays and deductibles for employer reimbursement up to their allowance amount. Employers only pay funds after they have approved an employee’s reimbursement claim, and all reimbursements are payroll and income-tax-free. Unused allowances accrue from month to month; however, any unused funds at the end of the year are kept by your company or organization. You have the option to carry over those funds or reset them annually.
To best strategize contributions and group health benefits overall, employers can offer different classes of employees different group health plan options. For example, an employer can offer ICHRA to full-time employees and a traditional HRA to part-time employees, but no one employee or class of employee can receive both plan options.
ICHRA Benefits
There are several benefits of incorporating ICHRA plans into your overall group benefits package for both employers and employees, including:ICHRA Benefits for Employers:
Great for All Company Sizes: Unlike the QSEHRA, an ICHRA is not limited to companies with 50 or fewer employees.
Cost Savings: With an ICHRA in place, you don’t have to provide a traditional healthcare plan.
Control of Costs: Employers pre-define their allowance budgets for each employee or class of employees.
Flexible Plan Options: Design and strategize your health plan with no minimum contribution requirements or participation requirements.
Tax Benefits: All reimbursements given to employees are tax-free and are 100% deductible as a business expense.
Attract & Retain Top Talent: By offering more flexible health coverage options and reimbursements, your company can attract and retain high-quality candidates.
ACA Compliance: These plans meet ACA requirements such as minimum essential coverage, affordability, and minimum value.
ICHRA Benefits for Employees:
Cost savings: Reimbursements from employers help make individual health plans more affordable for employees.
Tax Benefits: Health insurance premiums under an ICHRA are tax-free.
Flexible Plan Options: Employees have the freedom to select an individual health insurance policy that best suits their needs.
Transferrable Plans: Because the individual purchases his/her own plan, they can take the health plan with them if they change careers.
Quick & Easy Reimbursements: The process to submit a claim and receive reimbursement for eligible medical expenses is quick and easy.
Offering the right group benefits is essential to attracting and retaining top talent. But our team at Term 2 Keep also knows you want to offer group health benefits in a cost-effective and efficient way. Give our local San Francisco agents a call to discuss whether an ICHRA is right for your company or organization.
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If you own a small business or non-profit organization with less than 50 employees, the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) might be a good healthcare plan option for you.
What is QSEHRA?
Description text goes hereAlso known as a small business HRA, the QSEHRA was established in 2016 as a quicker, more efficient HRA that allows small business to offer a standalone HRA again after the Affordable Care Act (ACA) limited these plans, deemed them unlawful, and placed daily excise taxes on employers with HRAs.The QSEHRA does have a few setbacks, such as limits on how much employers can reimburse their employees and less flexibility than the Individual Coverage Health Reimbursement Arrangement (ICHRA) in offering different allowances to various classes of employees. QSEHRAs also restrict organizations from offering a group health plan as well, such as a flexible spending account (FSA) or SHOP coverage.
Nonetheless, if your employees have a wide array of health insurance policies and situations such as short-term, sharing ministries, Medicare, or utilizing a spouse’s or parent’s plan, a QSEHRA might be of more value to your team than an ICHRA.
How Does QSEHRA work?
As a small business, you can set up a QSEHRA at any time. You’ll need to set your employees’ annual reimbursement allowances under the legal limitations outlined by the IRS each year. You can also offer different allowance amounts based on employee age and family size.Once employees incur medical expenses like premiums, copays, and deductibles, they can submit a claim for reimbursement approval up to their monthly allowance and/or set up a recurring claim.
Reimbursements from the employer are payroll-tax-free and 100% tax-deductible. Employers can allow QSEHRA allowances to roll over each month and/or each year for their employees, so long as the reimbursements made never exceed the annual limit.
Full-time employees and their families are automatically eligible for QSEHRA reimbursements, and as the employer, you can determine whether you want to extend eligibility to your part-time employees as well. Keep in mind, your reimbursement allowances cannot differ between part-time and full-time employees with a small business HRA. Only participating employees with the minimum essential coverage (MEC) can receive their reimbursements tax-free.
QSEHRA Benefits
QSEHRA plans offer many small businesses and their employees a number of benefits, including:QSEHRA Benefits for Employers:
Cost Control: You set employees’ reimbursement allowances up to your organization’s maximum limit each year so you never go over budget.
Attract & Retain Top Talent: Offering QSEHRAs as a small business helps you stand out in the industry while attracting and retaining top candidates.
Payroll Tax Benefits: All reimbursements are tax-free for employers, and reimbursements are also 100% tax-deductible for employers.
QSEHRA Benefits for Employees:
Income Tax Benefits: Participating employees with MEC are eligible for income-tax-free reimbursements.
Delivers More Value: No matter if they are on a spouse’s plan, a sharing ministries plan, or even a short-term plan, employees can receive reimbursements through the QSEHRA plan.
Plan Flexibility: Employees have the freedom to choose the individual health plan that fits their lifestyles.
Cost Savings: QSEHRAs help to reduce out-of-pocket costs for eligible employees.
If you are still trying to determine if a QSEHRA is right for your small business or organization, give our local agents a call at Term 2 Keep in San Francisco, California. We can help you strategize a healthcare plan that delivers the most value to all of your employees collectively, no matter their individual circumstances. We look forward to speaking with you!