EMPLOYER BENEFITS
NATIONAL QUALIFIED IS A FIXED INDEMNITY PROGRAM THAT SHOULD BE DEFINED AS A POLICY OF INSURANCE THAT COVERS HEALTHCARE SERVICES
The program is offered at a cost to the employer and a pre-tax premium to the employee.
The National Qualified program does not offer cash rewards for participating in a wellness program. Rather, it provides claim benefits in response to a plan participant’s engagement in or use of specific healthcare services.
EMPLOYER BENEFITS
Every employee will be auto-enrolled.
- No out-of-pocket cost
- Become an employer of choice for supplying benefits and increasing employees’ take-home pay
- Extremely effective recruiting and retention tool
- Reduction in FICA taxes
SECTION 125 CAFETERIA PLAN
A Section 125 Cafeteria Plan is an employer-sponsored plan that allows employees to pay for certain qualified medical expenses – such as health insurance premiums – on a pre-tax basis. It is called a cafeteria plan because, like walking through a cafeteria and selecting various dishes to eat, employees can choose the types of healthcare options they want, such as medical, dental, vision, and other benefits, and decline the ones they don’t.
PROGRAM IMPLEMENTATION
Employers take the extra step of implementing the National Qualified program through a Section 125 Cafeteria Plan. While the implementation and administration of a Section 125 Cafeteria Plan result in additional obligations on the employers, it allows them to offer the National Qualified program on a pre-tax basis. This ultimately can benefit both the employer and the employee. Rather than first paying taxes and then using the remaining funds to pay for the National Qualified program, the Section 125 Cafeteria Plan is implemented and paid for with pre-tax funds.