Direct Deposit Pay (DDP)
PIOPAC’s Direct Deposit Pay (DDP) provides a streamlined approach that allows organizations to utilize their payroll systems in order to automatically push employee premiums to PIOPAC, for facilitation and remittance to carriers. This process allows organizations to maintain control of benefit offerings while keeping the organization out of the billing and payroll deduction management process. This helps avoid the ongoing commitment to expensive and often complicated benefits billing administration.
Our approach supports employers so they can offer benefits, enjoying the advantages of a robust benefits package without the complications and expenses of fully managing true payroll deductions and the extensive billing remittance to carriers processes. DDP reduces billing burdens of associated administrative costs and improves your overhead by streamlining and often avoiding the invoice reconciliation process altogether.
If your payroll system is capable of initiating funds transfer for an employee to elect to assign funds to a holiday account, or to pay child support or other such garnishments, through direct deposit, redirecting from their net pay, then your organization is a potential candidate for the DDP service with PIOPAC.
Once PIOPAC receives the DDP funds from the organization’s payroll system, PIOPAC, aggregates the premiums, and manages remittance to each carrier, helping to avoid the need to, manage deductions, reconcile invoices, and remittance of those premiums to multiple carriers.
In this process PIOPAC assigns an escrow account for each employee. PIOPAC provides the list of accounts assigned to each enrolled employee to the payroll department or broker to be input into the payroll system. The payroll system then pushes funds to the respective account on paycycle for premiums elected for each employee, and we take it from there. Employees are even able to provide PIOPAC with a secondary payment, so if they come off payroll for a time period, the employee will not be behind in premiums when they come back to work.
Advantages of DDP
Offer your employees or members, sponsored benefits, without the need to actively manage payroll deductions. Never receive or reconcile an invoice, never hold funds, and never remit premiums. DDP enables you to offer enhanced benefits without the traditional “billing burdens” associated with employee benefits.
- No Need for Payroll Deduction Slot
- No Set-Up Fees for Employers, Unions, and Associations
- No Subsidy Requirement
- Only 5 active participants required to enjoy PIOPAC’s billing services.
The Choice Is Yours
As plan sponsor, you choose the benefits (which may include health programs, life, disability, supplemental offerings and/or Minimum Essential Coverage (MEC) plan(s) to name a few) that best meet your member’s coverage needs. You also choose the enrollment method that best aligns with your engagement strategy (e.g. onsite enrollers, call center, and/or online platform). You provide marketing support and enrollment conditions where the employees/members can become educated on the new benefit offerings and provide the environment for them to enroll in the protection they need. PIOPAC can also work with you on drafting any employer subsidies for specific plans as needed. Once drafted, we gather both the employee premiums, we put the premiums employee +[plus] employer premiums to carriers with premiums broken down by product accordingly to carriers.
Why Choose PIOPAC?
- We cut out the billing hassles that you don’t have time for.
- Our flexible approach includes all your preferred benefit carriers.
- We can also collect union and association dues and, when requested, additional monies for non-insured products.
- If an employer prefers to enjoy cafeteria plan tax advantages, and does not mind managing deductions, but would like to avoid the billing and remittance workloads and expenses, our Employer Deduction Draft (EDD) solution might be the appropriate solution.
*Upon consultation PIOPAC will determine what (if anything) is needed to support your organization with our billing and remittance services. A billing call may be needed of the carrier/TPA if we are not already working with them.
**PIOPAC would need to have a billing call with organization to ensure processes are compatible and these parties can be paid directly by PIOPAC.
Learn more about PIOPAC Direct Deposit Pay