Executive Reimbursement Plans
Executive Edge is underwritten by Pan American Life. Executive Edge is available in all states, except: Colorado, Connecticut, Georgia, Kansas, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Dakota, Texas, Vermont or Washington.
This marketing material only offers a brief description of the Executive Edge policy. Complete policy provisions and coverages are described in the policy. While a properly structured medical reimbursement policy can qualify for a tax deduction for you – the employer – and non-taxable income to your employees, it is strongly recommended that you seek the advice of your tax counsel when considering implementation.
REWARD THOSE WHO DESERVE IT MOST
Those key people in your organization. You know who they are. They're the ones who will dictate the future of your company, the ones who go the extra mile to insure your firm's profitability. They're also the ones who are difficult to recruit and equally difficult to retain because everyone recognizes their value. Show them how much you recognize their value by covering them with Executive Edge. With Executive Edge, your key employees will immediately realize an annual benefit of up to $200,000 per year. That's because, with Executive Edge, your covered employees, and their dependents, are eligible to be reimbursed for medical expenses not covered under a base health plan. Your key employees will receive a check each time they get reimbursed for such things as deductibles, co-insurance, vision, dental, and other typical out-of-pocket expenses. And each time they get reimbursed through Executive Edge, the message of their importance to your organization will be reinforced.
YOUR COMPANY ALSO BENEFITS
Because Executive Edge is an insured medical reimbursement plan and not self-insured, your firm's premium contributions for the plan are typically tax deductible as a reasonable and ordinary cost of doing business. In addition, you are able to maintain or add on cost containment features to your existing plan, while still providing a valuable incentive to your key employees. And – best of all – you decide just who those employees are.
Experienced claims administrators handle all claims in a professional and discreet manner. After your covered employee submits to you those expenses not reimbursed under a base health plan, you submit that claim to us and we reimburse the covered employee and their dependents for the expense. It's that simple!
Each of your covered employees also receives an accidental death policy of up to $100,000 that will pay a beneficiary the lump sum amount in the event the employee dies as the result of a covered accident. Employees are covered 24 hours a day, seven days a week, regardless of where their travels take them.
EXECUTIVE EDGE PRESCRIPTION DRUG CARD
With Executive Edge, you may choose to offer our Prescription Drug Discount Card, which can be used at more than 50,000 pharmacies nationwide. With the Executive Edge Prescription Drug Card, your insured employee can pickup a prescription without paying any co-pay or deductible. They just show their card, pick up the prescription and away they go – without any money changing hands. All charges will then be billed to your company's regular Executive Edge bill. In addition to the convenience, you maybe able to save money since prescriptions are filled as part of Pharmaceutical Technologies, Inc.'s performance network. Consequently, charges are based on a discounted average wholesale price plus a professional dispensing fee. Also, an annual summary of all prescription charges will be provided to covered executives.
Frequently Asked Questions
Q. How much does Executive Edge cost?
A. The annual cost is $250 per covered employee plus 110% of the group's total eligible medical reimbursement claims. And, because Executive Edge is an insured plan, there is a maximum cost to your firm based on the number of covered employees. The Executive Edge Brochure to page 3 for a table of Maximum costs.) For example…let's assume your company covers five key employees under the Executive Edge $100,000 Plan. Your costs are $250 per covered employee (5 x $250 = $1,250) plus 110 percent of eligible medical reimbursement claims. Your group's maximum cost is $75,000, but each covered employee could submit claims for up to $100,000.* *Covered medical expenses incurred by the same insured or dependent during any one Plan Year will be subject to a 10 percent per occurrence limit.
Q. How do I submit a claim?
A. Claims submission is easy. After receiving your covered employees' (and their dependents) non-covered base health plan expenses, you submit the claim and administrative fee to us. We then adjudicate the claim and reimburse the employee for all eligible expenses. So, every time an employee gets a check from Executive Edge, it will remind them of your loyalty to them.
Q. Who can be covered under Executive Edge?
A. You, as the employer, decide which class of employees you want covered under the policy. All members of the selected class must be included and fulltime, actively working employees, retired employees, board members or the surviving spouse of an employee. Those whom you select, as well as their dependents, are then eligible for coverage as long as they continue to be covered under a base health plan.
Q. What medical expenses are covered?
A. Typically, if an expense is medically necessary and qualifies under Section 213 of the Internal Revenue Code, it would be eligible for reimbursement under Executive Edge. An example of covered expenses would be:
- Deductibles and coinsurance
- Dental care and orthodontia
- Annual physicals and preventive care
- Vision care as well as eyeglasses and contact lenses
- Smoking-cessation programs
- Professional nursing services
- Prescription drugs
- Expenses for nervous and mental disorders
- Treatment of alcohol and drug abuse
- Inpatient and outpatient psychiatric care
- Hearing aids and examinations
- Private-duty nursing
- Chiropractic services
- Medical supplies and equipment
A. There are certain exclusions under the policy, including:
- Losses due to war
- Expenses the covered individual is not legally obligated to pay
- Services that are not medically necessary
- Service contracts or warranties relating to vision care
- Custodial care
- Hospitalization, services, treatment or supplies furnished by a government agency
- Cosmetic surgery
Q. Will covered employees pay taxes on the benefits?
A. Typically, employees will not pay taxes on benefits received from their participation in Executive Edge. Compared to a self-insured plan, where payments to participants would be taxable, payments under an insured medical reimbursement plan, like Executive Edge, are generally tax-free.
Q. Couldn't key employees just deduct their out-of-pocket expenses on their individual tax returns?
A. Under current tax law, individuals can only deduct out-of-pocket medical expenses that are in excess of 7.5 percent of income.
Proposals & Brochures
Please call Gary Whiddon, CFP at (877) 472-4279