In the current benefits world, dental insurance is largely an employer-paid product, while cancer insurance is a voluntary product. But why? The best answer I have is inertia.
Below are the top five reasons this model works much more effectively than traditional payroll deduction. And these distinctions are more important than ever, given the current economic environment disrupting payroll deduction.
In the past few weeks, key industries for voluntary benefits such as restaurants, hotels, public schools, and other service sectors have shuttered for an indeterminate period of time. And unfortunately, voluntary benefits are disproportionately skewed towards these hourly workers and sectors.
IRS rulings about the taxability of voluntary benefits paid for with pre-tax dollars through a Section 125 plan have always been an issue. But today, the move away from pre-taxing of VB is stronger than ever, led by the large broker houses, consultants, and the good old IRS.
On October 16th, the first domino fell. The first state government (the Commonwealth of Kentucky) communicated their decision to discontinue all payroll deductions of voluntary benefits, starting in 2019. In short, this is a watershed event in accelerating the death of traditional payroll deduction.
In the voluntary benefits space, the shift to a zero-bill, post-tax environment opens the door for the last major coming change: from scheduled benefit plan design to lump-sum design.
DebugScreen: mobile
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"articles": [
{
"uri": "/2023/03/13/cancer-vs-dental-why-we-need-to-switch-how-theyre-both-insured/",
"title": "Cancer vs. dental: Why we need to switch how they're insured",
"byline": "Tripp Amos",
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"prettyDate": "March 13, 2023",
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"summary": "In the current benefits world, dental insurance is largely an employer-paid product, while cancer insurance is a voluntary product. But why? The best answer I have is inertia.",
"body": null
},
{
"uri": "/2020/07/14/rewriting-the-book-on-voluntary-benefit-sales/",
"title": "Rewriting the book on voluntary benefit sales",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "July 14, 2020",
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"authors": [
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"summary": "The brokers who integrate a few new concepts into their business models most effectively will win in the new voluntary benefits world.",
"body": null
},
{
"uri": "/2020/04/06/4-reasons-split-direct-deposit-is-better-than-payroll-deduction/",
"title": "4 reasons split direct deposit is better than payroll deduction",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "April 06, 2020",
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},
"authors": [
{
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"summary": "Below are the top five reasons this model works much more effectively than traditional payroll deduction. And these distinctions are more important than ever, given the current economic environment disrupting payroll deduction.",
"body": null
},
{
"uri": "/2020/03/23/the-new-normal-in-voluntary-benefits/",
"title": "The \"new normal\" in voluntary benefits",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "March 23, 2020",
"timeToRead": "4 minute",
"image": {
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},
"authors": [
{
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],
"kickerNode": [],
"summary": "In the past few weeks, key industries for voluntary benefits such as restaurants, hotels, public schools, and other service sectors have shuttered for an indeterminate period of time. And unfortunately, voluntary benefits are disproportionately skewed towards these hourly workers and sectors.",
"body": null
},
{
"uri": "/2018/11/27/has-obamacare-jeopardized-the-pre-taxing-of-volunt/",
"title": "Has Obamacare jeopardized the pre-taxing of voluntary benefits?",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "November 27, 2018",
"timeToRead": "8 minute",
"image": {
"uri": "https://images.benefitspro.com/contrib/content/uploads/sites/412/2018/11/08_Tax_Rates_Form_Numbers_MI.jpg",
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},
"authors": [
{
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],
"kickerNode": [],
"summary": "IRS rulings about the taxability of voluntary benefits paid for with pre-tax dollars through a Section 125 plan have always been an issue. But today, the move away from pre-taxing of VB is stronger than ever, led by the large broker houses, consultants, and the good old IRS.",
"body": null
},
{
"uri": "/2018/11/12/the-first-domino-has-fallen-accelerating-the-death/",
"title": "The first domino has fallen: accelerating the death of payroll deduction",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "November 12, 2018",
"timeToRead": "6 minute",
"image": {
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},
"authors": [
{
"webUrl": "/author/profile/tripp-amos/",
"name": "Tripp Amos"
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],
"kickerNode": [],
"summary": "On October 16th, the first domino fell. The first state government (the Commonwealth of Kentucky) communicated their decision to discontinue all payroll deductions of voluntary benefits, starting in 2019. In short, this is a watershed event in accelerating the death of traditional payroll deduction.",
"body": null
},
{
"uri": "/2018/01/02/the-shift-to-lump-sum-design/",
"title": "The shift to lump-sum design",
"byline": "Tripp Amos",
"kicker": "",
"prettyDate": "January 02, 2018",
"timeToRead": "5 minute",
"image": {
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},
"authors": [
{
"webUrl": "/author/profile/tripp-amos/",
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}
],
"kickerNode": [],
"summary": "In the voluntary benefits space, the shift to a zero-bill, post-tax environment opens the door for the last major coming change: from scheduled benefit plan design to lump-sum design.",
"body": null
}
]
}
}