Better benefits.
Lower payroll costs.

It is an employer-sponsored benefit program that combines qualified preventative care services with a Section 125 pre-tax election and a Section 105 medical reimbursement arrangement. The goal is to expand employee benefits while creating payroll tax savings.

No. It is a standalone supplemental program designed to sit alongside qualifying existing group health coverage. Employees keep their current coverage, and the employer keeps its current carrier and broker relationships.

The standard model uses a $50 monthly per-enrolled-employee administration fee. The same employee is estimated to create $91.65 in monthly employer FICA savings, leaving approximately $41.65 in net monthly savings. Actual results vary.

The 104 services offered are designed for zero net employee cost. In the standard illustration, payroll tax savings offset the $139 monthly management fee and can also increase take-home pay. Results depend on the employee’s tax situation.

No. The employee illustration uses a 22.5% blended effective tax rate and shows an estimated $130.55 monthly increase. Income, filing status, state, pay frequency and other factors affect the actual result.

There is no public minimum stated on this page. The economics become more significant as workforce size grows, which is why Black Flag primarily works with mid-sized and large employers.

Participation generally requires W-2 employment, a regular schedule of at least 30 hours per week, enrollment in qualifying group health coverage meeting the 60% minimum value threshold and sufficient wages for the pre-tax election.

No, but we have an Everyday Health program designed for this. Contact us to discuss the options.

Yes. The plan covers the employee, spouse and dependents.

Yes.

Usage rules vary. Certain services include unlimited access, while others are annual, appointment-based or subject to clinical and vendor limits. Exact terms are included in the benefit materials.

Most services can be accessed through a modern smartphone, tablet or computer with an internet connection. Telephone access is also available for certain counseling and support resources.

An eligible annual chemistry panel is available through the preventative wellness visit. Other labs may be offered at a discounted cash price or billed through insurance, depending on the service and clinical need.

The plan includes a tiered medication formulary. Depending on the elected tier, certain acute medications are available at $0, some chronic medications may be available at $5 and other medications may receive discounts. Exact coverage must be confirmed in the proposal.

The $1,198 monthly pre-tax election reduces eligible wages subject to employer FICA. At 7.65%, that produces an estimated $91.65 in gross monthly savings. After the $50 monthly administration fee, the estimate is $41.65 net per enrolled employee.

Section 125 supports the voluntary pre-tax benefit election. Section 105 governs the medical reimbursement arrangement and related administration. Together with qualifying medical services under Section 213(d), they form the program structure.

Section 213(d) defines medical care for federal tax purposes. The program’s preventative care services are organized around services intended to qualify under that definition.

The program administrator prepares and maintains the Section 125, Section 105 SIMRP and PCMP documents, coordinates enrollment and billing, and delivers services through independent vendors. The employer remains the plan sponsor.

Programs are designed to integrate with existing payroll systems.

Enrollment is voluntary and completed through the program’s portal using individually signed election forms. Payroll then adds separate deduction and reimbursement line items.

The program includes formal plan documents, uniform fees, signed elections and ongoing administration. These measures are designed to support consistent documentation, but no one can guarantee the outcome of an audit.

Black Flag evaluates the business opportunity, models the economics and coordinates the process with the appropriate administrator. The program itself is not insurance and does not replace a qualified health plan.

Black Flag remains your point of contact during evaluation and implementation. Program and vendor teams provide enrollment, administration, member and service support after launch.