The maximum benefit amount for an ECP is set by the employer each year, typically from $250 to $1,000 per employee per year. To make budgeting easy and provide services immediately, employers pay a monthly prorated amount that accrues funds in an AHR account. Employees send their bills directly to AHR for payment up to the maximum yearly benefit amount. Excess funds, if any, are returned to the employer at the end of the year, or may roll over to cover benefits in the next year. ECP benefits are tax deductible to the employer, and tax free to the employee.
The AHR fee is extremely reasonable, and agents set their own commission, per employee per month. AHR bills the employer accordingly. ECP is available for current employees, and terminates when an employee leaves the company (ECP is COBRA-exempt).