The U.S. Government created ACA and IRS codes allowing for payroll tax savings for companies utilizing a Wellness Integrated Medical Expense Reimbursement Plan (WIMPER) realizing that ultimately a healthier workforce would save the government money.
The Paradigm Health and Wellness Plan: A Comprehensive WIMPER Solution
The Paradigm Health and Wellness Plan is an innovative employee benefit program that qualifies under a Wellness and Integrated Medical Plan Expense Reimbursement (WIMPER) structure. This plan aligns seamlessly with federal Affordable Care Act (ACA) regulations, providing a tax-advantaged pathway for employers and employees to access valuable health and wellness benefits. Rather than offering a "free money" grant, the Paradigm Health and Wellness Plan enables the redistribution of payroll taxes toward specific benefits authorized by the ACA. In this model, tax dollars typically remitted to the federal government are instead redirected to support eligible employees in purchasing voluntary benefits, provided the plan administration adheres to ACA guidelines.
The Paradigm Health and Wellness Plan, powered by US Health Center’s award-winning PredictiMed™ platform, adheres to ACA guidelines and uses advanced predictive analytics to enhance employee health while controlling healthcare costs. PredictiMed™ integrates data from medical and pharmacy records, genetics, biometrics, and more to predict individual and group health risks up to 3-5 years in advance, allowing for targeted interventions. Validated by the Intel/GE Care Innovations Institute, PredictiMed™ has demonstrated an 80-93% reduction in ER visits and hospitalizations, improving quality of life and financial outcomes for organizations.
Overview of the WIMPER Program
The Wellness and Integrated Medical Plan Expense Reimbursement (WIMPER) program represents a unified healthcare model designed to provide tax-advantaged healthcare benefits. The Paradigm Health and Wellness Plan incorporates three essential components to achieve this:
1. Section 106 Wellness Plan: Allows pretax funding of wellness initiatives, enhancing affordability and accessibility for employees
2. Section 105 Self-Insured Medical Reimbursement Plan (SIMRP): Provides tax-free reimbursements for various medical expenses as defined under IRC Sections 105(b) and 213(d)
3. Section 125 Cafeteria Plan: Enables employees to choose and fund their healthcare benefits through pretax contributions, reducing their taxable income and creating tax advantages for both employers and employees
Advantages for Employers and Employees
Tax Savings for Employers
The Paradigm Health and Wellness Plan reduces employer FICA obligations, as employee contributions are not considered taxable wages for Social Security.
1
Increased Affordability of Benefits for Employees
Through salary reduction agreements under IRC Section 106(a), employees can make pretax contributions to fund wellness benefits, making additional insurance or health services more affordable without impacting net pay.
2
Lower Taxable Wages for Employees
Employee contributions are not subject to income tax, resulting in reduced taxable income and higher take-home pay.