Protect operating margins
Eligible employer payroll-tax savings can create new budget flexibility and help reduce operating expenses.
Black Flag Hospital Benefits
Lower Hospital Payroll Costs.
Better Care for Your Care Teams.
Explore approximately $500 in illustrative annual net employer savings per eligible participating W-2 employee, while adding convenient virtual benefits for nurses, clinical teams, and hospital staff.
ZERO NET ADDITIONAL EMPLOYER COSTDesigned so qualifying payroll-tax savings offset the cost of the program. No increase to your net benefits budget.
Calculate hospital savings
No insurance carrier change. No broker replacement. Keep your payroll provider.
Payroll savings calculator
What could your hospital save?
Model the potential financial opportunity across your W-2 hospital workforce, then request a confidential organization-specific review.
$0 net additional employer costProgram expenses are designed to be covered by eligible payroll-tax savings, subject to verification.
employees
1150,000
Estimated annual employer savings$499,800in estimated net savings per year
Per month$41,650
Per employee$500per year
Three-year illustration$1,499,400
Illustration assumes the entered number of employees enroll. Actual eligibility, participation, compensation, payroll configuration, tax treatment and program design affect results. This is not a quote or guarantee.
One opportunity. Three wins.
Improve hospital margins. Support the people delivering care.
Potential payroll efficiencies for hospital finance teams, paired with practical services for nurses and staff.
Deliver meaningful benefits
Give eligible nurses, clinical staff, administrative teams and support workers access to virtual healthcare, mental-health support, prescriptions and family services.
Potentially improve take-home pay
Some participating employees may see an increase in net pay, subject to their individual circumstances and plan terms.
Built around hospital workforces
The people who care for everyone else deserve convenient support, too.
Long shifts, overnight coverage, rotating schedules and high-acuity environments make it hard to fit routine care into the workday. Help eligible employees access supplemental virtual services without replacing the major medical coverage they already value.
Support for clinical schedules
Virtual primary and urgent-care options can reduce the friction of finding time for routine care. Availability depends on provider hours and location.
Mental health and wellbeing
Confidential psychiatry, psychology and support services for eligible employees navigating demanding work and family schedules.
One hospital-wide opportunity
Evaluate a benefit for W-2 employees across nursing, imaging, laboratories, environmental services, administration and other eligible departments.
These services supplement, rather than replace, existing major medical insurance. Coverage, clinical access, eligibility and any copay terms are subject to official plan documents.
Less disruption than you'd expect
Five things you don't have to change.
This is built to complement your existing benefits infrastructure, not replace it.
Your health insurance
Keep your existing qualifying coverage.
Your insurance broker
Existing broker relationships can remain in place.
Your payroll provider
Implementation is designed for your existing payroll process.
Your employees' choice
Eligible employees enroll voluntarily.
Your net benefits budget
The program is designed for net-zero additional employer cost, where the economics qualify.
Preventative care management plan
Included benefits
Explore 12 key included benefits within a coordinated program offering 104 services. Availability and eligibility vary by plan and location.
Virtual Primary Care
An ongoing doctor by video for checkups, chronic conditions and refills.
Virtual Urgent Care
A clinician by phone or video for infections, rashes, flu and more.
Psychiatry
Evaluation and medication management by video.
Psychology
Regular therapy by video for anxiety, depression and grief.
Dermatology
Send photos of a skin concern and receive a treatment plan.
Lab Testing
Bloodwork and routine screenings at Quest and LabCorp at no additional cost, where covered by the program.
Prescriptions
Over 1,000 common prescriptions at $0 through the program pharmacy network, subject to the formulary and plan terms.
MindTrainer PRO™
Guided audio for sleep, focus and stress.
Virtual Pet Care
Access a veterinary professional by chat or video.
401(k) Guidance
Online software that suggests how to allocate your 401(k), based on a short risk questionnaire.
Employee Assistance Program
Confidential counseling and resources for family, work-life, legal and financial concerns.
Trust & Will
Digital estate planning documents, available after six months of active enrollment under the program terms.
The 104 services offered are designed for $0 net employee cost. Specific vendor coverage, service availability and program terms apply. Paid elective add-ons are not included.
Why it works
How does the payroll-tax opportunity work?
The opportunity comes from established tax treatment for eligible pre-tax benefits and medical reimbursements.
The employer FICA match on eligible wages
Employers match Social Security and Medicare taxes on wages. A qualified pre-tax election can reduce wages subject to FICA, which can lower the employer match.
Total gross compensation does not change
A $1,198 monthly pre-tax election is paired with a $1,198 tax-free medical reimbursement in the same pay period. The tax treatment creates the potential savings.
Lower payroll costs
$91.65 estimated gross monthly FICA savings, less a $50 monthly program fee, leaves approximately $41.65 net per enrolled employee.
Documented plan structure
Section 125, Section 105 SIMRP and PCMP plan documents support the program structure and administration.
Modern preventative care
Virtual primary care, counseling, medications, lab testing and more are brought together in one program.
How it works
A straightforward path from analysis to launch.
Request an analysis
Share basic company and workforce information so we can evaluate the potential opportunity.
Review the proposal
See modeled employer savings, employee impact, eligibility assumptions and program details.
Approve and enroll
Plan documents are adopted, payroll codes are configured and employees make voluntary elections.
Launch the program
Services activate on the agreed effective date and ongoing administration is coordinated for you.
Let's run the numbers
What could your hospital do with more operating flexibility?
A five-detail inquiry starts the process. You'll receive a workforce-specific analysis before any commitment.
A real person. A clear answer.
Talk directly with Marlin.
Questions about hospital workforce eligibility, projected savings, or payroll implementation? Call directly, or send your business information above to request the review.
MarlinBlack Flag Hospital Benefits801-837-0500
Choose your next step
See whether the economics work for your hospital.
Request my free analysis ›☎ Call 801-837-0500No-obligation consultation. Hospital-specific results require an eligibility review.
Frequently asked questions
The questions serious employers ask.
These answers explain the general program. Your proposal and plan documents control the exact benefits, pricing, eligibility and implementation details.
Does this require replacing our Blue Cross Blue Shield or other existing health plan?
No replacement is proposed. The program is intended to supplement existing qualifying coverage, subject to the hospital’s plan terms, eligibility, benefit coordination and advisor review. Black Flag Benefits is independent and is not affiliated with or endorsed by the Blue Cross Blue Shield Association or any Blue Cross Blue Shield company.
Can an entire hospital workforce participate?
Eligibility must be reviewed for each employing entity and employee group, including W-2 status, pay, plan participation and other applicable requirements. Contractors and 1099 personnel should not be counted as direct W-2 employees.
Can the program launch without disrupting payroll or existing insurance?
The implementation model is designed to work alongside existing payroll providers and qualifying benefits, but final integration requirements must be confirmed with your payroll, HR, legal and tax teams.
What is a Preventative Care Management Plan?
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.
Does this replace our current health insurance?
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.
What does the program cost the employer?
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.
What does the program cost the employee?
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.
Is an increase in take-home pay guaranteed?
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.
What size businesses can use the program?
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.
Who is eligible to participate?
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.
Are 1099 contractors or self-employed owners eligible?
No, but we have an Everyday Health program designed for this. Contact us to discuss the options.
Can family members use the services?
Yes. The plan covers the employee, spouse and dependents.
Can members access services nationwide?
Yes.
Is there a limit on how often services can be used?
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.
What technology do employees need?
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.
What lab testing is included?
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.
Are medications included?
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.
How does the employer save payroll taxes?
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.
What are Sections 125 and 105?
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.
What is IRC Section 213(d)?
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.
Who handles plan documents and administration?
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.
Does this require changing payroll providers?
Programs are designed to integrate with existing payroll systems.
How does enrollment work?
Enrollment is voluntary and completed through the program’s portal using individually signed election forms. Payroll then adds separate deduction and reimbursement line items.
Does the program support audit readiness?
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.
Does Black Flag sell or replace insurance?
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.
Who provides ongoing support?
Black Flag remains your point of contact during evaluation and implementation. Program and vendor teams provide enrollment, administration, member and service support after launch.
Built on established tax law
Designed for documented, consistent administration.
The structure is based on IRC Sections 125, 105 and 213(d), supported by plan documents and administered under uniform rules.
Pre-tax election
A cafeteria plan document authorizes the voluntary employee election.
Medical reimbursement
The SIMRP governs the tax-free reimbursement and nondiscrimination rules.
Medical care services
The preventative care services are structured to qualify as medical care.
Flat participant fees
Identical fees and individually signed elections support consistent administration.
No program can guarantee an audit outcome or employee take-home result. Employers should review the structure with their own tax, legal and benefits advisors.