Under IRS Section 125, employees are able to receive certain tax incentives, based on certain participation in the compliant wellness activities. This benefit amount will not exceed 50% of member’s health care cost which includes deductibles, co-insurance, premiums, screenings and other health related prevention methods. Actuaries have studied and run comparisons between similar large groups that have compliant wellness programs and those similar large groups that do not have compliant wellness programs. Over a length of time, defined savings show that those large groups with a compliant wellness program have significant health care cost savings compared to the non-wellness groups. All of these calculations of savings and program costs have gone into defining the amount of Pre-Tax Deductions allowed for employees.
1) The Dept. of HHS in 2016 said the average cost for all health-related expenses (ins, drugs, etc) is $10,345 for every man, woman, and child in the U.S. (July Report)
2) The US Census data says the average household size in the U.S. is 2.54 persons. 2.54 x $10,345/12 months is $2,190 per month per household.
3) Designating $800 pep single and $1,125 (other) is below the national averages and is reasonable in relation to government reports on healthcare cost.
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