Answers to some popular questions
WHAT IS A "WIMPER"?
A WIMPER, or Wellness Integrated Medical Plan Expense Reimbursement is a qualified IRS Section 105b plan. This employer funded accident & sickness plan acts as a compliment to your existing health insurance that provides access to an array of healthy lifestyle, mental health, preventive care and chronic disease management tools and services, many with zero copay. There is also considerable tax savings available to participants as the premiums and reimbursements received under the program are tax free.
Does this program require that I change Health Insurance?
The short answer is NO! This is an ACA Compliant Participatory Wellness Program, NOT health insurance which means you DO NOT have to change your current health plan to participate. You can simply add this preventive health and chronic disease management benefit to any existing group or individual healthcare plan.
HOW DO EMPLOYERS SAVE AN AVERAGE OF $523/YEAR PER PARTICIPANT?
Employer contributions to a qualified Section 125 Benefit legally nullifies Payroll Tax. Because of this the employer sees immediate tax savings in the next payroll. Best of all, since we do not begin collecting our service fee until after the plans effective date, companies spend $0 out of pocket to initiate the TWP.
The net savings for your business is $374 per Individual and $672 per Family. ($523 avg)
How Do Employees Save $1,800/Year in Taxes?
Employees are not subject to payroll taxes on Accident & Health premiums paid by their Employer. And because the TWP participants are completing 213d qualified services the reimbursements received under this program are tax free.
This results in an average tax savings of $150+ per month per participant.
What are the Employee participation requirements?
To maintain eligibility for the TOTAL Wellness Program members agree to participate in a minimum number of Qualified Medical Services or "QMS's" per year that are available through our Preventive Health and Chronic Disease Management portal. Because the program is a Participatory Wellness Program you do not have to meet any specific outcome, you simply need to engage in the activity and there are 200+ services to choose from.
How long have WIMPER's been around?
While the acronym W.I.M.P.E.R. is new, the Section 105 HRA laws that dictate Wellness Integrated Medical Plan Expense Reimbursement are over 30 years old and there are no changes expected in the near future. Should there be changes, our ERISA Attorneys will advise Safe Harbor and our clients on how we may be affected.
How does Safe Harbor get compensated?
Safe Harbor charges a per member per month fee to the Employer for plan administration. Beginning the 15th of the month following the effective date of your plan Safe Harbor Health will auto debit your general account for the previous months bill.
This means that you will save on payroll tax for 6 weeks before the first monthly payment is made. No upfront out of pocket costs are needed to get started.
Is a WIMPER a popular benefit
Yes! An estimated 1.5+ million Americans are enrolled in a WIMPER or similar Employee Benefit. In fact, In January 2021 CPA Journal published an article by a respected Tax Attorney and Educator from New York highlighting the value of qualified WIMPER Programs bringing more attention to an already flourishing benefit option.
What if an Employee doesn't meet WIMPER requirements?
Safe Harbor Health will make every attempt to contact employees that fall behind on meeting program requirements. This includes contacting the employee directly via email, text or phone as well as reaching out to the employer and the broker to assist in helping the member catch up on Qualified Medical Services.
However, if an employee is not able to meet basic program requirements they will be dropped from the program at the next Open Enrollment period. Because there are tax benefits to enrollment that may be affected by not meeting these plan requirements, the member may have to pay back a portion of the payroll tax savings they received during the plan year.
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