Section 125 Goals

Satisfy needs of diverse employee populations
Employee needs are varied. Some prefer low-cost insurance with higher out-of-pocket costs. Others prefer higher-cost insurance with little or no out-of-pocket costs. Financial circumstances will determine the degree to which income protection and death benefit levels are necessary.

Control benefit program expense
Employer determines the acceptable level of funding. Dollars are transformed into credits of a pre-determined value. Explore the tremendous difference between cost and price. Employees have the option of improving their coverages, at their cost.

Improve awareness of value of benefits program
By having employees purchase”their benefits, the employer can more easily communicate the full value of the employer-sponsored programs. The portion of compensation derived from employer subsidization is clearly visible.

Provide tax advantages
Provide employees with the most tax-efficient method of choosing benefits available. Save on matching payroll taxes. Allow employees the opportunity to save even further with Flexible Spending Accounts.

Improve employee morale
Offer benefits to those employees who previously needed them. Allow employees to tailor their benefits to their individual/family needs.

Promote employer's goals and objectives
Through credit and pricing formulas, the employer can steer and promote its beliefs and values. Wellness criteria and performance-based credit formulas can be offered as incentives to employees.

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