VEBA Program

Voluntary Employee Beneficiary Association (VEBA)

The vehicle utilized to provide this unique Health & Accident benefit program is an Internal Revenue Code – section 501(c)(9) tax-exempt trust, commonly referred to as a Voluntary Employee Beneficiary Association (“VEBA”).

A VEBA is a benefit plan whereby sponsoring Employers can provide certain medical benefits, on a tax-deductible basis, for Owners, Officers, Employees and their respective dependents (“Employee”). Under a VEBA, sponsoring Employers deduct VEBA contributions as ordinary and necessary business expenses under IRC sections 162 and 461.

This program does not typically try to “shoehorn” everyone into a single plan of benefits. Instead, it allows the Employer to select any, or all, of nine (9) comprehensive major medical plans.

Each Employee individually choses one of the Employer selected benefit plans. Each plan’s premium rates reflect how much, or how little, coverage that person wants.

The rates for all nine plans remain consistent across all 50 States, regardless of where the Employer locations are located in the U.S.

Example: If a $500 deductible plan is chosen by a person with family coverage working in Chicago, New York, Dallas, Los Angeles, or even Honolulu, premium rates are the same and covered benefits are paid for any licensed physician or hospital in all 50 States.

General Information / Program Components