The CHAMP Plan, Explained Simply

It is a private employee benefits program built around an existing tax rule called Section 125. That rule allows certain employee benefit costs to be paid with money taken out of paychecks before certain taxes are calculated.

1. The Big Picture

Think of the CHAMP Plan as an extra health benefit a company can offer its employees. It is designed to help employees get everyday medical care, save money on certain health expenses, and help the company save money, too.

For Employees

The plan offers $0 copays for doctor and urgent care visits, preventive care, mental health support, and many prescriptions at no cost.

For Business Owners

The company saves money on payroll taxes and can reduce routine health care claims, helping control future health insurance costs.

For Payroll

The plan is intended to work alongside the company's existing payroll process.

The main idea: Give employees another way to access routine health care while potentially creating savings for both the employee and the employer.

2. The Business Owner's Point of View

Imagine you own a business with 100 employees. You already pay for payroll, and you may also offer regular health insurance. CHAMP is presented as a way to add benefits without replacing your current insurance plan.

Step 1: Review What You Have Today

Your payroll provider already calculates employee wages, withholds taxes, and processes payroll. You also know what health benefits you offer, if any. You start by reviewing:

• How many employees could participate.
• What your existing health insurance covers.
• How CHAMP would work with your current benefits.

Step 2: Understand the Potential Savings

Here is an illustration for 100 participating employees.

These are the supplied program estimates multiplied by 100 participants.

Step 3: Employer Analyzes the Numbers

The company reviews the plan documents, eligibility rules, employee cost-sharing, and how the program coordinates with existing insurance. Have the payroll provider and benefits or tax adviser confirm that the arrangement is properly structured.

Step 4: Add the Benefit to the Employee Package

Once approved, the employer communicates what the plan includes, who is eligible, when coverage begins, how employees enroll, and how to access care through the app.

Step 5: Review the Results

After implementation, the company can review participation, payroll tax results, the actual cost of the program, and any available claims or renewal data.

3. The Employee's Point of View

Learn About the Benefit

Your employer explains that CHAMP is an additional health benefit. It is not necessarily a replacement for your regular health insurance.

Sign Up

If you choose to participate and are eligible, you complete the enrollment process. The program is structured around a Section 125 benefit arrangement, which allows certain qualifying benefits to be paid for using pre-tax dollars.

Access Care

Need to see a doctor? Use an eligible provider for covered primary care or urgent care services with a $0 copay, according to the plan's terms.

Need advice or mental health support? Access eligible virtual care and mental health services through the available program features.

Need a prescription? Check whether your medication is included in the covered prescription formulary. Not every medication is necessarily covered.

These benefits are subject to the program's coverage rules, eligible providers, and prescription list.

See the Difference on Your Paycheck

The plan may change the way certain amounts are reported and deducted through payroll. The program's stated goal is to increase an employee's take-home pay through its benefit and tax structure. The claimed average increase is $1,500 annually.

4. How Easy Is It to Implement Through Payroll?

The goal is to make implementation straightforward. You generally do not need to replace your payroll company or change your existing health insurance carrier. The actual work involves setting up the benefit correctly, configuring payroll, enrolling employees, and reconciling payments. Here is what the process would typically look like.

1. The employer requests a savings proposal. CHAMP reviews the company's employee count, payroll structure, and eligibility information to estimate the financial impact.
2. CHAMP and the employer establish the benefit arrangement. They confirm the plan documents, eligibility rules, employee enrollment process, required disclosures, and applicable compliance requirements.
3. The payroll provider receives the setup instructions. Payroll may need specific deduction codes, taxable-wage treatment, benefit amounts, and reporting instructions. The employer should not simply create a pre-tax deduction without confirming the proper setup.
4. Employees enroll. The company distributes enrollment instructions and explains the benefits, paycheck changes, and participation requirements.
5. Payroll runs as usual. Each pay period, payroll applies the approved treatment to participating employees' paychecks. The company also follows the agreed process for sending funds and reconciling invoices.
6. The company checks the results. The employer compares the actual program fees, employer payroll tax savings, employee paycheck changes, and other measurable outcomes.

CHAMP publishes employer administration guidance covering payroll deductions, billing and employee eligibility.

The figures above are illustrative program estimates, not a guarantee of savings. Actual results depend on participation, eligibility and plan terms. This page is general information, not tax, legal or benefits advice; consult your payroll provider and a qualified tax or benefits adviser before implementing any plan.