Direct Deposit Pay (DDP)

PIOPAC’s Direct Deposit Pay (DDP) provides a streamlined approach that allows employers to utilize their payroll systems to automatically push employee premiums to PIOPAC in order to remit premiums to carriers. This process allows employers to maintain control of benefit offerings while keeping the employer out of the billing and payroll deduction management process, helping employers avoid the often expensive and complicated benefits billing administration on an ongoing basis.

Our approach supports employers so they can offer benefits, and enjoy the advantages of a robust benefits package without managing true payroll deductions and billing remittance and carrier invoice reconciliation workload. DDP reduces billing burdens of the associated administrative costs, improving overhead and efficiencies by eliminating the invoice reconciliation process altogether.

If your payroll system is capable of initiating funds transfer for an employee to assign funds to holiday savings accounts, or pay child support or other garnishments, etc. In other words, if employees can automatically redirect funds to specific accounts 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 payroll system, PIOPAC, manages the remittance process to each carrier, helping to avoid, managing deductions, reconciling invoices, and remitting 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 the premiums and other funds such as united way contributions etc, elected by and 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 has the option of paying premiums from their personal checking or cards to help prevent them from getting behind in premiums while away from work. Once an employee’s funds resume coming from payroll, our system will discontinue any secondary drafting they had authorized in the meantime.

Advantages of DDP

Offer your employees’ 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 a Payroll Deduction Slot
• No Set-Up Fees for Employers
• 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 employee’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 members can become educated on the new benefit offerings and provide the environment for them to enroll in the protection(s) they need. PIOPAC can also work with you on drafting any employer subsidies for specific plans as needed. Once drafted we put the premiums employee + employer premiums together and remit them to carriers with premiums broken down accordingly to carriers.

Why Choose PIOPAC?

• We cut out the billing hassles that you don’t have time for.

• Our flexible approach includes most preferred benefit carriers.*

• We can also collect union and association dues and, when requested, additional monies for non-insured products.**

Note: 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 appropriate.

*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.