The program is rooted in the Affordable Care Act (ACA) of 2010, which brought together key elements from earlier legislation to enhance employee benefits. It incorporates aspects of the Section 125 pre-tax employee plan, established under the Employee Retirement Income Security Act (ERISA) of 1974, providing tax-efficient benefits to employees. Additionally, it builds on healthcare efficiency improvements introduced by the Health Insurance Portability and Accountability Act (HIPAA) of 1996, which modernized healthcare administration and privacy standards. Following the COVID-19 pandemic, the program also reflects the U.S. government’s intensified focus on ensuring employees have access to comprehensive and proper benefits.

This program was temporarily overshadowed by other high-profile government initiatives, such as the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC). As those programs wind down, more businesses are rediscovering the PCMP as a valuable tool to save money and enhance employee benefits.

Supplemental benefits and wellness programs for employees mean the government keeps employees in their jobs, paying payroll taxes; encourages employers to hire, maintaining payroll and corporate tax revenues; and provides widespread insurance for working citizens, reducing dependence on Medicare and Medicaid. It allows the government to keep the taxpayer income streams coming.

The Preventative Care Management Program (PCMP) offers significant benefits for both employers and employees, creating a win-win scenario that enhances workplace productivity and satisfaction while reducing costs. Employers benefit from substantial payroll tax savings, averaging $650 per employee annually, and the program’s cost-neutral implementation ensures no out-of-pocket expenses. This makes it an effective tool for improving employee retention, as enhanced benefits and wellness programs boost satisfaction and reduce turnover. Additionally, healthier, more engaged employees contribute to higher productivity and a more positive workplace environment. The program also serves as an attractive recruitment tool, helping businesses stand out in a competitive job market, and aligns with regulatory compliance requirements under initiatives like the Affordable Care Act (ACA).

Employees also gain valuable advantages through the PCMP. Supplemental benefits and wellness programs support healthier lifestyles, lower stress, and enhance overall well-being. The program’s pre-tax deductions reduce employees’ taxable income, leading to significant tax savings. Access to additional benefits can help reduce out-of-pocket healthcare expenses, improving financial stability and providing peace of mind. Furthermore, employees feel more valued when their employer invests in their health and wellness, increasing job satisfaction and engagement. By addressing the needs of both employers and employees, the PCMP fosters a healthier, more productive workforce while delivering meaningful financial benefits.

The program utilizes pre-tax deductions under Section 125 of the Employee Retirement Income Security Act (ERISA), reducing taxable income for employees and payroll tax liabilities for employers. These savings can add up significantly over time.

Eligibility is typically based on having 20 or more employees and a compatible payroll structure. During the eligibility assessment, the program provider will evaluate your business to confirm eligibility.

Employees gain access to supplemental benefits and wellness programs that can improve their health, productivity, and overall satisfaction. Since the benefits are provided pre-tax, employees can also save money on their taxable income.