The Preventive Care Management Program
An IRS-compliant benefit structure that reduces your payroll tax liability and delivers a full suite of employee health benefits — at zero net cost to you or your team.
What Is the PCMP?
The Preventive Care Management Program (PCMP) is an IRS-compliant benefit structure that allows employees to allocate a portion of their wages pre-tax toward preventive care services defined under IRS Section 213(d). These pre-tax deductions lower the employee's taxable income, which reduces the employer's payroll tax liability — while the funds are reimbursed to employees as part of a structured wellness program, leaving their net take-home pay unchanged.
The PCMP works in tandem with three IRS tax code provisions: a Section 125 Cafeteria Plan (established by Congress in 1978), a Section 105 Self-Insured Medical Reimbursement Plan (SIMRP), and Section 106 employer-provided wellness coverage. Together, these three components produce a compounding tax advantage for both the employer and the employee.
"The value of coverage by an employer-provided wellness program that provides medical care (as defined under § 213(d)) generally is excluded from an employee's gross income under § 106(a), and any reimbursements or payments for medical care provided by the program is excluded from the employee's gross income under § 105(b)."
— IRS Chief Counsel Advice (CCA) Memorandum 201703013
At a Glance
Built on Three IRS Tax Code Provisions
The PCMP's tax advantage is not a loophole — it is explicitly authorized by the IRS through three separate Internal Revenue Code provisions that have been in place for decades.
Under IRC § 125, a cafeteria plan allows employees to choose from a menu of qualified benefits using pre-tax dollars. This reduces the employee's taxable wages, which in turn reduces the employer's FICA tax base. The Section 125 Cafeteria Plan has been part of the U.S. tax code since 1978 and is the foundational structure of the PCMP.
Under IRC § 105(b), amounts paid by an employer to reimburse employees for medical care expenses (as defined under § 213(d)) are excluded from the employee's gross income. The SIMRP component allows the PCMP to reimburse employees for qualifying medical expenses tax-free within the same paycheck cycle.
Under IRC § 106(a), the value of employer-provided wellness coverage is excluded from an employee's gross income. This means the employer's contribution to the wellness plan is not subject to FICA taxes for either party. Combined with §125 and §105(b), this third provision ensures the entire structure is airtight.
How the PCMP Tax Advantage Works
Employee Enrolls in the Wellness Plan
Each eligible W2 employee enrolls in the PCMP. Their gross compensation is restructured to include a $1,216/month pre-tax wellness benefit contribution under § 125.
Pre-Tax Deduction Reduces Taxable Wages
Under IRC § 125, the wellness contribution is deducted from gross wages before FICA taxes are calculated — reducing the taxable wage base for both employer and employee.
Employer Saves $636/Employee on FICA
Because the taxable wage base is reduced, the employer saves $636 per W2 employee per year in FICA taxes (Social Security + Medicare) — starting the first payroll cycle.
Employees Receive Tax-Free Health Benefits
Under IRC §§ 106(a) and 105(b), employees are reimbursed tax-free within the same paycheck. Their net take-home pay remains unchanged or increases by up to $50/month.
Who Is Eligible for the PCMP?
The qualifications for the Americare PCMP are straightforward whether you're a small, midsize, or large business. Most employers with a consistent W2 workforce qualify.
Application Process
PCMP vs. the Employee Retention Credit
If the ERC left a bad taste — for you or businesses you know — that skepticism is understandable. Here is a direct comparison of why the PCMP is structurally and legally different.
"The ERC was a loophole that got abused. The PCMP is a permanent feature of the tax code."
Ready to Start Saving?
Submit your intake form and receive a custom savings proposal for your business within 48 hours.
Calculate Your Savings