Information for Decision makers

1. Employer Challenges
Employers have higher costs than ever & indicators say costs will continue to rise
Employees have higher deductibles and more exposure than ever
Turnover is costly and disruptive, retention is key
The Cypress Advantage Plan
A Self-Funded Defined Benefits Plan under section 125 guidelines
Employer realizes substantial payroll tax savings to offset the rising costs of Major Medical
Employee gets valuable coverage to fill in health insurance gaps, funded by payroll tax savings
Administered by CBA so there is no additional work internally for the employer
Employee Benefits
Life Insurance Benefit (Based On Filing Status): Single $100 per month / Married $150 per month
Benefit Bank: Savings form a benefit bank used to purchase coverage from the cafeteria options
Take home pay is the same unless employee purchases additional coverage by choice
Employer Savings
Payroll taxes are 7.65 %
Administration fee is 5 % of lowered payroll
Employer realizes a 2.65% savings after administration costs is paid for
Employer saves average of $449 per employee per year
How It Works
A Self-Funded Defined Benefits Plan is created & plan documents are prepared for employer
Qualified Major Medical or Mini-Med coverage must be in place to participate
There is a monthly contribution into the plan (Contribution amounts set by TPA)
There is a schedule of defined benefits in the plan (Similar to a Mini-Med)
When a group already has Major Medical in place the extended benefit option is selected
- The EBO gives the employee the below in lieu of our schedule of defined benefits
o CAP adopts the existing Major Medical to re-insure our plan
o A Cafeteria loan is triggered
o The Life insurance benefit is funded
o The Benefit Bank is funded
Next Steps
Set your enrollment date
Fill out your census
Complete account set up forms
Enroll employees in their new benefits
Payroll set up assistance call