Benefit Plan Pre and Post Tax

Currently, we have Health and Dental plans set-up so Domestic Partners and Student coverage are separate plans. This allows us to collect post tax premiums. We're researching the possibility of modifying our current plan to allow both pre-tax and post tax premiums and eliminate the need for this separate plan. While keeping in mind all covered individuals need to be attached to the main plan for ACA purposes.

Does anyone currently have premium deductions set-up to collect pre-tax and post tax? If so, what does your set-up look like? What issues have you encountered?

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Comments

marty

Hi Jill,

We have all of our plans set up for pre- or after-tax because we have shareholders who have to pay premiums after-tax. It's pretty simple and we don't have any issues. On the BN15 we set up both pre- and after-tax deductions

And on the BN18.1, we allow for both but default pre-tax. Not sure if you can make out the pictures or not, but it's a simple set up.

unknown

(The original question was asked by my co-worker Jill.)

Our plans are currently set up the same way yours are Jenn and it works great for collecting Pre tax OR After tax, but we are looking for an option to collect both at the same time within one Plan. Example: Employee elects coverage that includes Domestic Partner coverage. Pretax premium $100 for employee coverage and an additional Posttax premium of $125 for covering a domestic partner. A total of $225 needs to be collected from the Employee.

Our current state for this example: Employee would be enrolled in HL-A for the base coverage with a coverage level of Single and premiums would be pretax. Employee would also be enrolled in HL-B for domestic partner coverage and premiums would be posttax. The domestic partner would be linked to HL-B since the employee's base coverage is Single and can not have any covered individuals linked to it on BN32.

Problems we are facing:

#1 - The domestic partner plan is not set up with ACA information so the coverage individual details for the DP is not flowing through to the BN29.2 which is forcing us to have to do overrides for ACA purposes.

#2 - We just started doing an 834 feed to our health & dental carriers. When the information in the example above is included in the file it is labeling the Employee as Single coverage when in fact the EE has EE+1/Family coverage. We could ask that logic be built into our feed to include the DP & Student plans but resources are quite limited and it still doesn't solve our ACA issue.

Any input is greatly appreciated!

marty

Oh - my misunderstanding. I'm sorry but we don't have any employee in this scenario, but I will be watching for others' replies in the event that we ever need something similar.

unknown

I was never able to get pre and after tax tied to one plan to work by splitting the premium for domestic partners.

What we have done in the past is enroll the domestic partner with the employee such as employee+spouse or family so that the enrollment goes to the carrier correctly. Then have an employee group tied to a PR30 standard time record that imputes the employees income with the correct offset amount for the domestic partner coverage to true-up state and federal taxable wages. We added a process flow that loops through the dependent enrollments and looks for domestic partners, when found and if not already in the group, they are added to the appropriate employee group so that the employee group maintenance is automated. This was done for medical, dental and vision. If the domestic partner is changed to relationship type spouse then the employee is removed from the group and the imputed income stops.

unknown

Thanks Lisa! Your process is intriguing. Are you willing/able to share the Process Flow you use? Currently we run a Crystal Report that looks for anyone actively enrolled in DP coverage (which we have set up as separate Benefit Plans) and the report is formatted with the necessary values for us to export it to excel and then do an Add Ins of time records to impute the income.

Now that we are passing enrollment data to our carrier we are starting to see the complexities of having the DP and Student plans set up as separate benefit plans.

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