Sankaty Light Benefits - Our Plan
The Sankaty ExecSelect™ plan offers your company one of the most cost-effective ways to boost health care benefits for select employees who grow and sustain your business – while also differentiating your company’s overall compensation/benefits package from competitors. Our fully insured plan provides direct, tax-advantaged reimbursement to key employees (and eligible dependents) for health care expenses not covered by a company’s underlying medical plan, other group plan or government plan – plus all premium costs are tax-deductible for employers.*
Superior Plan Choice
ExecSelect™ provides employers a superior alternative to health consumer accounts like HRAs, HSAs and FSAs. The latter provides employees with funds for health care expenses, but these accounts are limited in size and scope of coverage. Our plan, however, provides real health insurance coverage, benefits and value. And, unlike Voluntary Supplemental Health Insurance plans, which only cover unexpected expenses (e.g., accidents, critical care, hospital indemnity, etc.) not covered by a company’s underlying health plan, our plan covers both unexpected and expected medical costs, including deductibles, co-pays, co-insurance and a broad range of other out-of-pocket expenses. As an excepted benefits plan, our plan is not subject to the requirements of the Affordable Care Act and also can be offered to select employees at the employer’s discretion, with participation of at least three employees.
Superior Tax Advantages*
ExecSelect™ additionally offers employees significant tax advantages over company-funded or self-insured insurance plans. Unlike the latter, reimbursements paid through our plan are typically excluded from the employee’s gross income – and thus, are non-taxable to the employee. The chart below shows how our plan provides key employees with substantial tax savings.
*Sankaty Light Benefits does not provide tax, legal or accounting advice. The material in these presentations is set forth for informational purposes, and is not intended to provide, and must not be relied on for, tax or accounting advice. Readers should consult their own tax, legal and accounting advisors for advice on their specific situation.
|Recipient's Tax Bracket||Total Reimburse-ments||Federal tax paid by recipient||Federal tax paid by recipient|
What’s more, our plan also offers employers significant tax savings. All plan premiums paid by the employer are tax-deductible expenses. The following chart illustrates how our plan compares to a self-funded reimbursement plan on an after-tax basis, wherein the employer pays a cash bonus to key employees to cover out-of-pocket health care expenses not covered by the company’s basic health plan. The chart is based on the cash bonus being equal to the amount of the health care expense plus the additional amount needed to make the bonus tax-free.
|Self-Insured Bonus Plan||ExecSelect™||Employer savings with Sankaty Plan|
|Recipient’s tax bracket||Total reimburse-ments||Federal tax liability of recipient**||Total employer payment||Total employer payment|
**Total federal tax gross-up to net $15,000 to recipient
Superior Customer Service
Sankaty Light Benefits designed ExecSelect™ to provide participants with a superior customer service experience. Our plan features super-convenient, HIPAA-compliant online claims submission, plus efficient claims processing and reimbursement paid directly to the employee’s bank account.