Four short videos, every claim footnoted

Employees take home more, and your company pays less payroll tax? It's fair to be skeptical. Here's how it actually works. Step one. Employees pay for a real supplemental policy, a fixed hospital indemnity plan, with pre-tax payroll deductions through a Section 125 cafeteria plan. Pre-tax means lower taxable wages. Every pre-tax premium dollar reduces the employer's 7.65% FICA cost on that dollar. Step two. The plan pays a fixed cash benefit when a covered, provider-coded medical service occurs, as defined in the policy. The carrier funds each payment, and your payroll simply passes it to the employee. On top of that, employees and their families get $0-copay virtual care and formulary generic medications. It's not free money. The savings come from how the tax code treats pre-tax health premiums and medical benefits, so the plan must meet strict rules. Elysian's tax counsel concluded claim payments are not wages. The IRS has taken a different view of programs that pay for activities rather than medical expenses. Your Financial Impact Statement shows the projected net savings after program fees, based on your census.

What does your team actually get? Here it is, in plain terms. $0-copay virtual urgent care, by phone or video, 24/7, for employees and their families. $0-copay virtual primary care, including ongoing care for chronic conditions. And $0-copay virtual therapy, counseling, and psychiatry. $0-copay on formulary generic medications, at tens of thousands of pharmacies, or by home delivery. Fixed cash benefits for covered hospital events, such as a hospital admission, each night in the hospital, and ambulance transport. Amounts depend on the plan chosen. Plus lab and biometric screenings, one-on-one health coaching, and a tax advice line run by the law firm Brennan Manna & Diamond. Yes, the premium comes out of pay, before taxes. In Elysian's case data, enrolled employees took home about $140 more per month on average. Individual results vary with pay, withholding, and claims. It's a supplemental benefit. It does not replace your major medical plan.

Getting started takes three steps: census, quote, and enrollment. Step one: the census. It's a simple spreadsheet with each employee's state, pay schedule, and gross wages per paycheck. We send you the template. Elysian's census review screens each employee individually. Employees must earn enough each week for the pre-tax deduction to work in their favor, and only W-2 employees can take part pre-tax. Step two: the quote. Your Financial Impact Statement shows the projected net savings after program fees, based on your census. It's a projection, not a guarantee, so review it with your own tax advisor. Before you sign, ask for the documents in writing: the policy form, the plan document, the fee schedule, and the claim-trigger definition. Step three: enrollment. Employees get advance notice and an easy opt-out by phone or online. Elysian says materials and a call center are available in English and Spanish. Ready? Book a short fit call, or download the CFO kit.

Here are the questions CFOs and HR leaders ask us most. Is it IRS-approved? No plan like this is pre-approved by the IRS. Elysian has a written memo from Holland & Knight, and the IRS has published its lines. We show you both, so your advisor can compare. Are the savings guaranteed? No. Your Financial Impact Statement is a projection based on Elysian's model and your census. Actual results may vary. Does it replace our medical plan? No. It sits on top of your ACA-compliant medical plan. Does everyone qualify? No. In Elysian's case data, roughly 60–80% of a workforce qualified. What about audits? Morgan Lewis reported in September 2026 that the IRS has begun auditing these kinds of plans. Elysian states it provides legal defense at no cost if the program is examined. Per Elysian, documentation is available under NDA, pending. More questions? Every answer on our site is footnoted to its source.