Frequently Asked Questions

No. Elysian sits alongside your existing medical coverage. Nothing about your current carrier, your broker relationship, or your renewal changes. Employees who enroll get additional benefits on top of the plan you already offer.

In most companies, the program is net-neutral or net-positive for the company because of the payroll-tax savings from Section 125 pre-tax premiums. We will model the exact numbers for your headcount before you commit.

Most of the heavy lifting is done by our VP of Operations and her staff. From your team, all we really need is a short intro call, a plan review, and a review of adds and deletes at enrollment — the kind of thing your HR lead already does.

Section 125 is the IRS code that lets certain benefit premiums come out of an employee’s paycheck pre-tax. It lifts employee take-home pay 2–5% and reduces the company’s share of FICA on those dollars — which is how the program pays for itself.

We handle it. Every Elysian Section 125 plan is structured with tax-advisory oversight, and your company receives a plan document and a tax-treatment summary tailored to your situation.

Most companies are live in 30–45 days from signature. The longest step is enrolling employees — and even that is usually a single 30-minute staff meeting with dashboard access handed out the same day.

The Section 125 payroll-tax savings show up on the very first pay run once the plan is active. Operational savings — lower claims, fewer sick days, lower workers’ comp renewal — typically show up within one to three quarters.

Most appointments that would have been in-office visits become telemedicine visits that can happen before the shift starts, during a break, or after hours. That alone is why participating dealers report a 28% reduction in sick days.

Yes. Eligible family members can be enrolled under the same plan so the employee does not have to manage two separate systems for household care.

The compliance foundation is the written Section 125 plan document and consistent administration. IRS guidance requires a written cafeteria plan and proper benefit design, elections, and operation.

Yes. In this structure, the employee-paid hospital indemnity premium is the pre-tax election under the Section 125 plan. The only exception is the “Excess Benefit rule”: if 213(d) medical payments exceed the cost of the insurance premium, that excess is taxable at the individual employee level, and we provide free accounting services to guide them.

Not always. Eligibility depends on tax classification and ownership structure, and certain owners, such as more-than-2% S corporation shareholders, are treated differently under IRS rules.

No. CPT is a medical coding standard used for billing and claims processing, while Section 125 governs pre-tax benefit elections.

You’re right, the last thing you need is another distraction. This is designed to plug into your existing HR and F&I process with minimal lift. The goal is lower benefit cost per head and better retention without adding management overhead.

Yes. Most groups centralize benefits, and Elysian Dealer Health is a supplemental program. It lives alongside your core plan and is judged strictly on added profit, employee uptake, and retention at the store level.

You’re not interested in another “brochure benefit” that no one uses. The benchmark here is different: cost per employee, participation, and turnover in sales and service are tracked before and after rollout. If those numbers don’t move, it isn’t worth your time.

For the store: more predictable benefit spend and higher retention in key roles. For you: a differentiated tool you can point to when defending gross and blue-sky value with buyers or OEMs.

We work through licensed benefits partners and compliant plan structures. Our role is to bring an auto-specific, Bain Capital product, underwritten by some of the strongest and oldest carriers in America, not to turn you into a test case. Any rollout is done with clear documentation and review.

Judge us on two things: (1) whether the math works on your P&L, and (2) whether Bain Capital’s ownership and compliance research, the strength of our underwriting partners, and dealer results give you enough confidence to test it at one rooftop first.

Totally fair, benefits are already a big line item. If we can show a path to trimming your per-employee healthcare spend while improving perceived coverage for your staff, with minimal disruption, that is a conversation worth having.

No. This is a standard cafeteria-plan structure: a written Section 125 plan, clear elections between taxable compensation and qualified benefits, and normal pre-tax treatment for eligible premiums. No FICA “credit tricks” and no guaranteed net-zero cost promises. One defined pre-tax election plus an employer-paid claims processing fee, which is net in your savings.

Common audit problems are missing or outdated plan documents, pre-tax deductions without a Section 125 plan, and unrestricted mid-year election changes. Controls: a written and adopted plan, documented elections, clear eligibility, and annual nondiscrimination testing.

The fix is straightforward: adopt a written plan that matches what you’re doing, and keep it updated when benefits change. Implementation should align the plan document, benefits schedule, and payroll deductions. We have a plan template we can provide.

Elections are generally locked in for the plan year except for limited defined events. Document the rules and tighten the process. One employee pre-tax election makes administration easier.

Eligibility, contributions and benefits, and key-employee-concentration testing all matter. If skewed, the tax break for highly compensated or key employees can be lost. We recommend annual testing and adjustments to contributions or eligibility as needed.

Classify who can participate on a pre-tax basis according to entity structure and ownership, so no one is promised pre-tax treatment when they should be excluded.

No. The design is light-administration. Our TPA handles clearly coded pre-tax deductions, which is what the fee covers, and we handle the standardized election forms, communications, and payroll checklist.

No. The response is to identify the issue, gather documentation, correct payroll and elections, apply the correction consistently, and improve controls. Regulators and courts generally look for good-faith, reasonable corrections and better controls, not automatic invalidation.

Section 125 itself does not trigger a special IRS filing merely because of a cafeteria plan. However, ERISA welfare-benefit notice, SPD, and possible Form 5500 requirements may still apply. Coordinate existing benefits with counsel or your CPA. We have an accounting team that handles most of these processes.