Each year, you set your ECP maximum benefit amount per employee, typically ranging from $250 to $1,000 per employee. To make budgeting easy and provide services immediately, you pay a monthly prorated amount that accrues funds in an AHR account. Your employees send their bills directly to AHR for payment up to the maximum yearly benefit amount. Any excess funds remaining in your account are returned to you at the end of the year, or may roll over to cover benefits in the next year. ECP benefits are tax deductible for you, and tax free to the employee.
ECP is available for current employees, and terminates when an employee leaves the company (ECP is COBRA-exempt).