Group Benefits That Cost Your Employees Nothing†

The Overlay Savings Plan is a fully insured supplemental benefits program that "overlays" your existing group health plan without replacing it. Employees elect supplemental coverage (hospital indemnity, telehealth, Rx, worksite coverage) through a Section 125 cafeteria plan. These pre-tax elections reduce employees' taxable wages, which in turn reduces the employer's FICA (Social Security + Medicare) payroll tax liability. That 7.65% FICA savings — recovered per employee — is then applied to offset the cost of the supplemental program, often resulting in a net-zero or net-positive outcome for the employer.

It's a legitimate tax structure — not a gimmick. When employees elect benefits through a Section 125 cafeteria plan, their gross taxable wages decrease. This reduces FICA tax obligations for both employer and employee. The employer's share of FICA savings (7.65% of the election amount per employee) is real recovered cash. In many workforce configurations, this recovery exceeds the cost of the supplemental benefits, creating a net-zero or better outcome. Individual results depend on workforce size, wage levels, and participation rates.†

We quote and structure all major group health plan types: Fully insured (fixed premium, carrier bears all risk — best for smaller or risk-averse employers), Self-funded (employer pays actual claims, keeps surplus — ideal for large employers with healthy populations), Level-funded (hybrid — predictable monthly payments with refund potential), and ICHRA (Individual Coverage HRA — employer provides tax-free reimbursements for employees to buy ACA individual plans). We also quote dental, vision, life, disability, and comprehensive supplemental programs alongside any health plan.

An ICHRA (Individual Coverage Health Reimbursement Arrangement) allows employers to reimburse employees tax-free for individual health insurance they purchase on their own (through the ACA marketplace or off-exchange). Unlike traditional group health, ICHRAs have no participation requirements, no minimum contribution mandates, and give employees the freedom to choose any plan that fits their family's needs. ICHRAs are excellent for employers with geographically dispersed workforces, high employee turnover, part-time staff, or those who want 100% cost predictability without traditional group health complexity.

Yes. Section 125 cafeteria plans are explicitly authorized under the Internal Revenue Code and have been in use for over 40 years. The supplemental benefits in the Overlay Savings Plan are fully insured products from rated carriers — they are not discount cards or self-funded risk. The plan structure is designed to comply with ACA, ERISA, HIPAA, DOL, and IRS requirements. We strongly recommend working with qualified benefits counsel to review any plan implementation for your specific workforce and state regulations.

Implementation typically takes 30–45 days from signed agreement to live enrollment. HR involvement is minimal — our team handles employee education, enrollment communication, and coordination with your payroll provider. Your employees elect benefits during a brief open enrollment window (usually 1–2 weeks). No new HR systems or software are required. We handle reporting, carrier communications, and ongoing support throughout the plan year.

No. Your existing group health plan, carrier, network, and plan design remain completely unchanged. Employees keep their current doctors and coverage. The Overlay Savings Plan adds supplemental benefits on top — hospital indemnity, telehealth, Rx benefits, and other voluntary coverages. Employees gain more coverage; nothing is taken away. The only payroll change is the pre-tax election, which actually increases their take-home pay by reducing their own FICA obligation.

We serve group employers with 25 to 5,000+ W-2 employees across all industries. The Overlay Savings Plan is most impactful for employers with 50–500 employees, where FICA tax savings are substantial and fully insured supplemental products are cost-effective. For larger groups (500+), we typically recommend a custom analysis that may include self-funded arrangements, captive insurance, or advanced ICHRA structures. For smaller groups (25–50), the fully insured overlay often still delivers meaningful savings.

Yes. We work alongside your existing broker relationship — we are not a broker replacement. We specialize specifically in Overlay Savings Plan structures and comprehensive group benefit design. In many cases, we collaborate directly with your current broker to layer the program on top of their existing carrier relationships. If you don't have a broker, we can serve in that capacity or refer you to trusted partners in your region.