Increased cash flow
Last week we detailed the math behind the CARES Act payroll tax deferral and suggested that we may have an alternative to the deferral that will create additional cash flow for companies, whilst also providing employees with an increase in spendable income of 2-5%, enhancing the benefits package, and reducing long-term healthcare risk.
That solution is the Proactive Health Management Plan (PHMP). With the PHMP employers can save around $324 per enrolled employee annually in net payroll tax savings!
100 employees enrolled = $32,400 in net payroll tax savings
1000 employees enrolled = $324,000 in net payroll tax savings
Additionally, employees are rewarded with increases in spendable income of 2-5%, and additional concierge benefits: no-copay telemedicine, telephonic health coaching, biometric and DNA screenings, and a health coaching platform at no additional cost.
Lastly, as it is more important than ever to focus on preventive care for improved health. The PHMP has 4 patents on population health management at its core that are statistically proven to per member per year spend by 5-7% in the first year and 11-17% over a five year tenure under health cost trend.