How Do Payments Work With Gravie?

When employers choose to drop their traditional group health insurance plans and work with Gravie, they give employees additional compensation that can be used to buy health insurance in the individual market. One of the questions we hear from employers switching to Gravie is, “How will I get that extra compensation to my employees?”

Here’s how the transaction works: After deciding how much you’d like to add to employees’ compensation each month, you let your Gravie account manager know the amount for each employee. The amount you provide to each of your employees is up to you—it can be based on family structure, seniority, age, etc.

Every month Gravie will send you an invoice for the monthly total and you’ll send us the payment. Your employees will also pay Gravie for the remaining balance on their premium. We then take care of getting your employees’ monthly payments to the health insurance company.

Here’s a quick example of how it works:

John and his wife receive $300/month from Vern’s Auto. The couple shops through Gravie and calls a Gravie advisor to find the right health insurance plan for their specific needs. They choose a plan that has a monthly premium of $500. Vern’s Auto makes one payment to Gravie with the total amount they’re giving all of their employees, including John’s $300/month. John sets up his bank account with Gravie so that each month he’ll make his $200 payment (the balance on his plan) through Gravie. Gravie then takes the $300 we received from Vern’s Auto, the $200 we received from John, combines them, and sends them to the health insurance company.

Payment through Gravie makes for a seamless and predictable experience for both you and your employees.

Compliant with the ACA? Check!

Working with Gravie is completely legal and in full compliance with the rules of the ACA. With Gravie, employers don’t reimburse their employees’ healthcare coverage costs but offer added, taxable compensation instead, which employees can choose to cash out or use toward their monthly health insurance costs.

There are lots of benefits to making the transition from a traditional group plan to Gravie – like saving money and reducing or eliminating the hassle of administering employees’ health insurance – not the least of which is how simple it is for both you and your employees. And, we’re here year-round to help wherever we can.

We’d be happy to walk you through the process and answer any questions you have along the way. Call us at 844.540.8701, fill out our employer form, or tweet us @gogravie.