The partnership we have formed (Aflac/Maestro/Cleveland Clinic-USPM) works and could be utilized by any business or organization. As you know corporations are dealing with new requirements of the Affordable Care Act (ACA), the new healthcare law that mandates employer paid coverage with certain features. Under the new law, coverage for employees is also changing in that many policies will have higher deductibles and co-pays, so employees bear more risk while cost continue to rise.
We have packaged options that enable a creative response to the new healthcare environment at no net cost while giving employees a choice to cover the added exposure under new ACA healthcare policies. This is truly a “Healthcare Cost Containment System” that cannot be replicated for two reasons. First, the level of trust and cooperation amongst the partners involved does not exist any other place in the insurance industry. Second, the talents of the assembled partnership are on the forefront of healthcare innovation. This is very important to understand because it is the basis for our fundamental change to the way we approach healthcare as a nation.
One option involves a company enabling Aflac to sit with each employee and offer supplemental insurance products to them. These policies are enabled through, but not purchased by, employers. The employee buy-in rate for Aflac products can approach 60 percent of a workforce, with the right enrolling conditions.
Importantly, corporations have a financial reason to bring Aflac into their business: When they do, the company can save tens of thousands or even millions of dollars annually in federal taxes. This is because under Section 125 of the tax code, Aflac premiums deducted from a paycheck reduce the employee’s pretax income that is subject to employer and employee federal FICA taxes. For the employer, this means 7.65% less FICA tax (the employer’s share) paid on the aggregate amount Aflac premiums for employees.
The extra cash from tax savings can be staggering for larger employers, but for every employer it goes right to the bottom line.
Another option is enabled through an alliance between Aflac and Cleveland Clinic/US Preventive Medicine, an innovative wellness program provider for employees. That option has the company taking the FICA tax savings on Aflac’s program and investing those into a USPM preventive wellness plan, essentially a “giveback” to the employees.
A wellness plan includes incentives for achievements in the health and wellness program, competitions, personal progress tracking and such to find and prevent causes of major health complications (for example, diabetes and hypertension). It motivates people to address health issues before they cost the company large sums of healthcare costs. This “giveback” means healthier employees, which, in turn, means lower healthcare costs for the company.
Importantly, the Aflac tax savings, when devoted to a preventive health/wellness program for employees, produces a 2 – 300% return, according to third party auditors.
While the Aflac and Cleveland Clinic-USPM preventive options work independently, the real benefit is a simultaneous Aflac/Cleveland Clinic/USPM in-person enrollment that will dramatically increases participation—meaning more tax savings and more wellness results. The personal touch that Aflac enrollers can give to each employee when discussing Aflac and Cleveland Clinic-USPM is unique and the key ingredient in helping companies address changes brought about by the Affordable Care Act.
Now, tie this system together using the MaestroEdge enrollment platform and create a cutting edge, user friendly experience that allows companies to track data, streamline enrollment and manage compliance simultaneously for additional savings.
Inclusion & Education
Bell & Lindsay, Inc. is an internationally known organizational development, management training, executive coaching, and healthcare consulting firm. Bell and Lindsay offers a range of services from customized workshops to whole systems change and inclusion consulting. Founded in 1986 by Josie Lindsay, CEO, Bell & Lindsay, Inc. is headquartered in Cleveland, Ohio with a satellite office in the Washington, DC metro area.
Using our core philosophy of Transformation through people and Inclusion, Bell & Lindsay’s overall goal is to improve organizational efficiency and effectiveness through building leadership and team capabilities along with an inclusive culture. We incorporate a variety of business, healthcare and organizational development best practice techniques into our services ranging from traditional classroom training, executive and management coaching, inclusion skills and strategies, facilitation and team effectiveness strategies, partnering/relationship management, and targeted speaking engagements.
Bell & Lindsay, Inc. is SBE, MBE, FBE certified by the City of Cleveland, the State of Ohio, and the State of Maryland.