Employer FAQ<
Have unanswered questions? Call us today at 360-466-9100.
Is LyfeBank considered a health insurance provider?
How does LyfeBank work?
What are the advantages of using LyfeBank over other programs?
What is a LyfeVault®?
Is LyfeBank like an HSA?
Can my employees and their families combine contributions to their LyfeBank account from other employers?
As an employer, how much do I contribute to our LyfeBank account?
How soon after I begin paying into LyfeBank can my employees begin to use their contributions?
Are there fees associated with the LyfeBank program?
Can an employee use the money in their account to make "non-medical" purchases?
How do benefit plan rules associated with "highly compensated employees" apply to the LyfeBank program?
Are employees obligated to buy health insurance if they have a LyfeVault® Account?
Once I have paid into LyfeBank and my employee is enrolled, and they apply for health insurance is there any guarantee of coverage for them?
Does LyfeBank offer group insurance plans?
Does the LyfeBank program work for my business even if I have employees with health conditions that might not be able to pass individual underwriting?
As an employer can I keep my group plan and use the LyfeBank program?
Where can LyfeBank funds be used?
If an employee passes away, what happens to the LyfeBank account?
Q: Is LyfeBank considered a health insurance provider?
A: No, LyfeBank is not a health insurance provider. We provide an innovative system for financing the purchase of health insurance and other medically approved services. Funds are contributed pre-tax to employee LyfeVault accounts and the employees choose how to spend the money (with the only restriction being that the funds may only be used to help cover qualified medical expenses). Funds not spent at the end of the year carry forward and the money remaining in an employee's LyfeVault account at the time he/she stops working for a contributing employer remains accessible to the employee until completely spent.
Back to top
Q: How does LyfeBank work?
A: LyfeBank allows you to provide a quality healthcare program to your employees but also alleviates your healthcare insurance management hassles. Here's how it works:
- Employer signs an agreement with LyfeBank to establish an account.
- Employer agrees to an amount of money to be paid to all eligible employees (contribution amounts can be based on hours worked or a set amount per month and can vary depending on employee benefit class).
- Every month on the 15th the employer submits a report to LyfeBank that shows the amount of contribution assigned for each employee.
- On the 20th of the month or the next regular business day, LyfeBank electronically collects contributions from your authorized bank account or a separate zero balance account (ZBA) we help you establish and deposit these funds in a trust account at a federally chartered bank. Using our electronic transactions processing system, we allocate the funds to each employee's healthcare account as defined in the employer’s report.
Q: What are the advantages of using LyfeBank over other programs?
A: LyfeBank provides many benefits to you as an employer, including:
- You control healthcare costs - set what you can afford for contributions (amount not tied to premium costs).
- Easily predict and manage your yearly health benefit costs.
- No group plan premium obligations.
- No hassle management, just send a single payment each month.
- No setting up benefit plans with insurance brokers.
- No policy selection.
- No group insurance policy enrollment.
- No insurance-related COBRA.
- No health benefit tripwire between part-time and full-time employees.
Q: What is a LyfeVault®?
A: A LyfeVault is the account where an individual employee accumulates all of their health program funds. These include their pre-tax employer health program contributions, and if offered their own pre-tax wage withholdings from an employer sponsored 125 Premium Only Plan. A LyfeVault enables employees to collect healthcare contributions from every LyfeBank enrolled employer for whom they work and then pool that money so that all the contributions are available to the individual or family to cover health insurance premium or other eligible healthcare expenses.
Back to top
Q: Is LyfeBank like an HSA?
A: The LyfeBank method is similar to an HSA but is much more flexible. For example, funds in an HSA can't be used to pay insurance premiums and the HSA can only be used in connection with a high-deductible health insurance policy that meets certain guidelines. Unlike the HSA and the high deductible medical policy requirement, the LyfeBank HRA program can be used to pay premiums for any market approved medical, dental, vision, or long-term care policies.
Back to top
Q: Can my employees and their families combine contributions to their LyfeBank account from other employers?
A: Yes they can. We understand that millions of individuals in the U.S. work at more than one job, and that in more than 50% of married couples both spouses work. We've developed our patent-pending LyfeBank to enable each of these individuals to obtain healthcare contributions from every family member employer who has signed up with LyfeBank. All employer contributions are pooled with any salary reduction contributions the employees make to a Section 125 Cafeteria Premium Only Plan. The combined funds are available to purchase individual or family health insurance or pay for other qualified medical expenses.
Back to top
Q: As an employer, how much do I contribute to our LyfeBank account?
A: Contribution amounts can vary by employee classes. Contributions can also be an amount per month or an amount earned per hour of work. Our LyfeBank consultants will assist employer clients in determining contribution amounts by providing a market analysis of individual insurance premium prices in the locations of your employee base. This analysis will help define how much the employer can contribute and with that contribution what level of purchasing power will be available to eligible employees.
Back to top
Q: How soon after I begin paying into LyfeBank can my employees begin to use their contributions?
A: Employees can gain access to funds in their LyfeVault once they have completed enrollment, their account is activated, and the account has funded by the employer.
Back to top
Q: Are there fees associated with the LyfeBank program?
A: LyfeBank charges a one-time fee per employee to set up a LyfeVault account (Many of our employers pick up this cost for their employees). LyfeBank charges different fees for different plan types. For the Lyfe Total Advantage plan, LyfeBank charges a flat fee per month service fee for each employee LyfeBank account. This fee covers the following costs; collecting the distributing employer contributions to emplyee accounts, paying monthly insurance premium(s), providing on-line account management to review account balances and transactions, the LyfeVault VISA Debit Card for all qualified account holders, and payment of reimbursements where a LyfeVault VISA Debit Card is not accepted or unavailable. LyfeBank also charges a flat monthly employer contribution fee that covers all of the administrative tasks that we perform that are normally completed by employers. Please contact LyfeBank for more details on our plans and current pricing.
Back to top
Q: Can an employee use the money in their account to make "non-medical" purchases?
A: No, LyfeBank requires receipts and/or other substantiation that a particular expense is a "qualified medical expense" before LyfeBank can reimburse an employee for an out-of-pocket cost.
Back to top
Q: How do benefit plan rules associated with "highly compensated employees" apply to the LyfeBank program?
A: The LyfeBank funding plans are subject to existing rules and regulations limiting the ability of companies to discriminate in favor of highly compensated employees. LyfeBank representatives can assist companies in structuring plans to comply with the non-discrimination rules and can assist owners and partners in LLCs and S corporations by establishing a plan that best meets their needs.
Back to top
Q: Are employees obligated to buy health insurance if they have a LyfeVault® Account?
A: There is no requirement for participants in the LyfeVault program to purchase insurance. LyfeBank does not sell health insurance. For those employees who want health insurance our affiliated company Aklins Insurance, or one of our local affiliated brokers are available to help employees and their families purchase medical, dental, vision, and/or long-term-care insurance policies that meet their needs.
Back to top
Q: Once I have paid into LyfeBank and my employee is enrolled, and they apply for health insurance is there any guarantee of coverage for them?
A: The vast majority of workers will qualify for a health insurance plan. For those that do not, there are a variety of options that can be pursued, which varies from state-to-state. Our affiliated provider, Aklins Insurance, has professionals available to assist individuals who may be denied coverage for the plan to seek alternative solutions.
Back to top
Q: Does LyfeBank offer group insurance plans?
A: Our affiliated licensed insurance brokerage firm, Aklins Insurance, primarily sells individual and family policies. These are policies that the individual or family chooses and then manages. The policies are portable so if employees change jobs they don't have to worry about losing coverage, so long as premiums are paid.
Back to top
Q: Does the LyfeBank program work for my business even if I have employees with health conditions that might not be able to pass individual underwriting?
A: LyfeBank and its affiliated insurance brokerage partners have developed some solutions regarding this issue that will help you determine if the LyfeBank program is right for you. Solutions include:
- It's at the carrier's underwriting discretion to accept a customer with health issues, but our insurance broker partners have seen employees with health conditions accepted for coverage. Again, it's at the discretion of the carrier, but we attempt to clearly communicate that LyfeBank customers bring employer paid benefits and a commitment to health maintenance.
- • There are conditions where Health Questionnaires can be waived. Those cases are dependent on state, federal and insurance company regulations. Your Aklins appointed agent who is knowledgeable in protocols can consult with your employee to discuss their specific circumstances to achieve the best result.
- If an employee were not able to pass the underwriting requirements, then they would be eligible in most states for a policy that has some form of state sponsorship (for example, the Washington State High Risk Pool). We understand the premiums for these policies are typically higher than for standard-issue policies. Our insurance partner Aklins Insurance and its team of professional insurance agents can help decide what course of action is best.
Q: As an employer can I keep my group plan and use the LyfeBank program?
A: Yes, you can sponsor a traditional group plan for your employees. For the class of workers that are not on the group plan, you can offer the LyfeBank financial benefit.
Back to top
Q: Where can LyfeBank funds be used?
A: LyfeBank funds can be used in all 50 states, in Mexico and Canada to reimburse for qualified medical expenses. LyfeBank funds not spent roll over year after year.
Back to top
Q: If an employee passes away, what happens to the LyfeBank account?
A: LyfeBank funds are passed to their qualified dependents, as defined by federal law. Funds can still only be used for medical purposes.
Back to top