BCA
ANNOUNCES EMPLOYEE MEDICAL
ACCOUNTS
Salt Lake City, Wednesday, May
16, 2001: Benefit Strategies
Group, Inc. (“BCA”) announced
today that it had succeeded at
creating a flexible, new form of
employee benefit program known
as Employee Medical Accounts (“EMAs”).
In explaining the need for such
programs, Ronald H. Snyder,
Attorney and President of BCA,
commented that medical costs had
risen more than 10% per year for
several years and “employers are
fed up.”
EMAs were created by combining
the best of flexible spending
accounts, medical savings
accounts and 401(k) accounts,
and offer employees the best
features of each:
-
Employee contributions may be
either pre-tax or after-tax
dollars.
-
Accounts are not subject to
“use-it-or-lose-it”
requirements.
-
Employees are rewarded for not
spending the funds in their
accounts.
-
Employees may direct their own
investments.
-
Funds accumulate tax-deferred.
-
Payments or reimbursements
from the accounts are not
taxable to the employee.
-
Employees choose how to spend
their funds from among a
smorgasbord of benefits,
including health insurance,
reimbursement of out-of-pocket
expenses, disability
insurance, life insurance,
long-term care insurance, or
even for payment of severance
or educational assistance
benefits.
Employers receive great benefits
also:
-
No more spending money for
benefits employees don’t want
or need.
-
A
cap on health and welfare plan
benefit costs at a level the
employer can afford.
-
Happier employees.
-
More competitive benefit
package to compete for better
employees.
Employee Medical Accounts have
already been featured in trade
publications, including the
November, 2000, issue of
National Association of Health
Underwriters magazine and the
April 1, 2001, issue of
Employee Benefit News.
BCA
will make these plans available
to clients, third-party
administration firms and health
brokers throughout the United
States at very reasonable
prices. “Some clients will save
enough in the first month”, to
cover the set-up fees, commented
Mr. Snyder. Snyder believes that
such plans will be popular with
employers who are looking for
long-term savings in their
health care costs, employers who
wish to provide a
post-retirement medical benefit
at a minimal cost. The plans
couple very nicely with other
cost-saving measures.
For additional information
contact Benefit Strategies
Group, Inc. |
