Section 125
What is Section 125?
On November 6, 1978, Section 125 was added to the Internal Revenue Code. Congress passed the Revenue Act of 1978, and the Cafeteria Plan was born. Cafeteria plans existed before 1978, but employer contributions were taxable to employees. Section 125 of the Code allows employees to pay for health insurance and other group benefits with pre-tax salary deductions. This added up to significant savings.
Timeline
1978
Section 125 plans
introduced to
allow for health
benefits on a
Pretax basis.
2010
Affordable Care
Act launched to
improve access to
health coverage
for individuals
nationally.
2014
Wellness benefits
added to the ACA
allowing for the
payment of specific
wellness program
activities.
2018
Section 125
Indemnity benefit
plans become fully
insured products
by major insurance
carriers.
2020
QHB Launches its
fully insured plan
and receives State
approvals
nationally.
What is Quantum Health Benefits?
Quantum Health Benefits is a Fully-Insured Healthcare Management Program that falls under Section 125.
The Quantum Program does not disrupt, change, or replace any of your current benefits.
The Plan is designed to ENHANCE the employer’s current benefits program and increase take-home pay for employees.
The Plan can be implemented at any
time during the calendar year.
Quantum Health Benefits is an all-inclusive preventive healthcare management program designed to reduce healthcare costs and improve employee productivity.
With no out-of-pocket costs, Quantum Health Benefits prioritizes and incentivizes preventive healthcare for employees while benefiting employers through tax savings.
With NO cost to the employee and $600 to $900 savings annually per employee to the employer.
The QHB Plan is a Fully Insured Supplemental Indemnity Plan.
The QHB Plan is approved by the State departments of insurance and available in all 50 states.
The QHB Plan is underwritten and fully insured through major US insurance carriers.
How It Works
A premium is deducted from the employee’s paycheck through a Section 125 Cafeteria Plan.
This deduction is the Insurance premium for a Fully Insured Indemnity Insurance Plan
This deduction lowers the employee’s taxable income creating a tax savings for both employee and employer.
The Employee adopts healthy lifestyle changes through access to the Quantum Proactive WellCare Plan Benefit.
Their participation generates a Section 125 Cafeteria Plan claim paid directly from the insurance company into their paycheck.
How Does Quantum Health Benefits Help Employers?
Profitability
There are several ways Quantum
Health Benefits improves a company’s
profitability. First, the Quantum Health
Benefits Plan is paid for with pre-tax
dollars which saves the employer an
average of $600-$900/year per
participant. Secondly, happy and
healthy employees mean improved
productivity and decreased
absenteeism.
Financial
Most major medical plans have
substantial out-of-pocket expenses
from deductibles, copays, coinsurance
and prescription drug costs. We
provide each employee a suite of
benefits designed to address these
issues and lessen the financial burden
on both the employer and employee.
Wellness
The Quantum Health Benefits Plan
improves overall health and wellness
through a few simple monthly
activities. These activities include selfdirected courses, health quizzes,
HealthWallet health risk assessment,
health scores and risk identification.
Employer Savings per 100 Employees
$60k – $90k Annual Savings Per Year
$300k-$450k 5 Yr EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization)
Next Steps
Run A Payroll Census
This will illustrate the company savings, increases in employee take-home pay and employee benefits..
Execute the RFC and MSA
Once these documents are signed, we can start the implementation process..
Implementation process
We meet with your Human Resource and Payroll departments to coordinate the execution and
administration of the Quantum Health Benefits Plan.
Enrollment
Quantum Health’s enrollment representatives are available to discuss with each employee the benefits of the Quantum
Health Benefits Plan, how to enroll in the Proactive WellCare App, how to file an insurance claim, and
answer any questions that employees may have.
Let Us Help You Get Started Today!
Contact Gesla Insurance Agency now to speak with our expert advisors and find the perfect coverage for your needs.