Financial Planning Benefits

Financial Planning Benefits

Flexible Spending Account
Flexible Spending Accounts (FSA) allows employees to set aside money on a pre-tax basis to pay for eligible healthcare and dependent care expenses. Employers can choose from the following Flexible Spending Accounts (FSA).

  • Premium contribution plan
  • Healthcare flexible spending accounts
  • Dependent-care reimbursement accounts
  • Commuter expense reimbursement account
  • Health reimbursement arrangement

Pierce Insurance solutions offers the following flexible spending account services & reporting:

  • Employee education materials
  • Nondiscrimination testing
  • Personalized customer service
  • Individual enrollment consultations with employees

  • Group presentations
  • Model master plan documents
  • Model Summary plan descriptions

Comprehensive reports include:

  • Enrollment confirmation summary
  • 5500 information
  • Account summary
  • Account activity reports

  • Year-end forfeiture report
  • Annual activity analysis
  • Calendar year report

Remember, when employees’ taxable income is smaller, so are your tax expenses. 

We can provide a detailed proposal showing what you will save after your employees enroll in a flexible spending account, commuter expense/reimbursement account or a premium contribution plan.


Employer Estimated Savings
Maximize your savings by maximizing your employee enrollment in both the Flexible Spending Account and Premium Contribution Plan. The more employees enrolled, the more you save on payroll taxes. The chart below outlines sample savings for your company.

Total Monthly Annually
Employee Premium Contributions* $15,150.00 $181,800.00
Health Expense Account Contributions*
(22 employees contribute $150/mo)
$3,300.00 $39,600.00
Dependent Care Expense Account Contributions*
(15 employees contribute $400/mo) $6,000.00 $72,000.00
Payroll reductions $24,450.00 $293,400.00
Employer Savings** $1,870.42 $22,445.10

*The above example assumes the employer employs 200 employees who contribute $181,800 annually for their insurance premiums. Participation in spending accounts is as noted above. Each employer’s savings will vary.

**FICA & Medicare savings at 7.65%.

Hospital Indemnity
Health care reform and the Affordable Care Act are continuing to affect the wallets of both employers and employees. With the rising cost of health care, one trip to the hospital could cause a serious financial setback given the deductibles, co-pays and out-of-pocket expenses. Group hospital indemnity coverage can help employees manage these unexpected costs by providing lump-sum benefits for many of the things medical insurance may not cover.
 

Provide financial protection

Group hospital indemnity coverage is a cost-effective way to complement your total benefits offering. Depending on the plan selected: Plans may pay a hospital admission benefit, enhanced options like special benefits for surgical procedures or days in the hospital – even transportation and lodging. And because this coverage is employee paid, you can provide this benefit at little or no cost to your company.

Health Care Cost Institute: 2016 Health Care Cost and Utilization Report

Key Findings from this Report

  • Total spending per person is now growing at faster rates than prior years, with 4.6% growth in 2016 compared to 4.1% growth in 2015
  • Spending growth in each year from 2012 to 2016 was almost entirely due to price increases. We saw particularly large increases in spending and price for administered drugs, emergency room (ER) visits, and surgical hospital admissions.
  • The 2015 Health Care Cost and Utilization Report shows that spending per privately insured averaged $5,141 in 2015, up $226 from the year before.  Price increases were the primary driver.

Plan design options may include:

plan1-button

  • Hospital admission

plan2-button

  • Hospital admission
  • Outpatient surgical procedure
  • Diagnostic procedure

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  • Hospital admission
  • Outpatient surgical procedure
  • Inpatient surgical procedure
  • Diagnostic procedure
  • Transportation and lodging

Optional benefits may include:

  • Rehabilitation unit confinement
  • Family coverage options
  • Wellness benefit
  • Guarantee issue
  • Some plans offer portability options

Group hospital indemnity insurance is intended for all employees, particularly those earning between $25K and $80K. Pierce Insurance hospital indemnity plans offer a choice of flexible, employer-selected options, often including an HSA-compatible plan design, particularly important for those organizations that already offer their employees this type of plan.

Enrollment support is a key factor. Pierce Insurance offers a full range of enrollment options:

  • Call center
  • 1:1 in-person meetings
  • Group in-person meetings
  • Web based enrollments (24/7)

This is not major medical insurance and is not a substitute for major medical insurance. Hospital indemnity plans do not qualify as minimum essential health coverage under the federal affordable act.

ID Theft

The Employee Benefit that Earns its Keep

  • Identity theft is when thieves steal your or your employee’s personal information in order to take over or open new accounts, file fake tax returns, rent or buy properties, or do other criminal activities in your name.
  • Over a third of employers offered identity theft protection in 2016.  Help safeguard your business and reduce employee downtime and distractions, while attracting better talent and separating your company from the competition with a fully-funded benefit that’s in high demand.
  • Offering identity theft protection can provide you with protection for your business and employees.
  • ID Theft monitors your and your employee’s identity from every angle including social security number, credit cards, and bank accounts.  If a breach does occur, the company immediately begins restoring your and your employee’s identity to its original state.

Pierce Insurance represents the top identity theft companies and discounted rates are designed for large groups.

Legal
Life
Pierce Insurance has offered an extensive portfolio of life products since 1955. We offer high benefit options and the ability to increase coverage during annual open enrollments. Our extensive life products portfolio covers the full gamut:

  • Term life: Term life plans to age 120 (some with guaranteed premiums and paid-up options
  • Whole life: Lasts a lifetime. Cash values accumulate which employees or retirees can borrow from or elect paid up options
  • Universal life: Coverage options through retirement. Flexible premium options and flexible benefit amounts as employees’ needs change

Life insurance provides both immediate and future financial protection for needs such as education, family obligations, emergency needs, burial needs, and retirement expenses. Our optional benefit offering may include:

  • Family coverage (spouse, children, grandchildren)
  • Terminal illness (living benefit if diagnosed with a terminal illness)
  • Long term care rider
  • Accelerated death benefit rider

  • Accidental death and dismemberment
  • Waiver of premium
  • Guarantee issue

Employees can explore their life insurance needs through our life calculator.

Student Debt Solution
Student loan repayment programs are climbing the pantheon of employee benefits, suggests a recent survey of full-time workers with student loan debt.
 

Pollfish found that 23% would gladly give up healthcare benefits for a student loan repayment benefit. In addition, 46% would relinquish paid time off and 33% would do the same for retirement benefits in exchange for a repayment benefit. Also, 53% said they’d consider a salary cut in exchange for a student loan repayment benefit.

David Chen, founder of Millennial Personal Finance, which conducted the study, believes student loan repayment benefits can help employers recruit young talent and appear more marketable to this workforce segment. “Students are leaving school with hampering debt, and monthly student loan payments, not healthcare, rank among their chief concerns,” he says.

“The message to employers is clear: student loan repayment programs are quickly becoming an essential part of their benefits portfolio in hiring and retaining top talent”. With 57% of the millennials surveyed citing loan debt as a major stressor affecting their daily productivity, the return on investment associated with offering a student loan repayment program “is essential to driving the company’s bottom line.”

 
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