What Is a Preventive Care Management Program (PCMP)?
Introduction
If you’re an employer looking to reduce payroll taxes, offer your employees valuable health benefits, and stay compliant with IRS and ACA regulations—all without increasing your costs—a Preventive Care Management Program (PCMP) might be the most overlooked solution available today.
But what exactly is a PCMP? How does it work? And how can your business benefit?
This article breaks down everything you need to know about preventive care management programs, how they’re structured, and why they’re becoming a go-to strategy for CFOs, HR leaders, and small business owners alike.
What Is a Preventive Care Management Program (PCMP)?
A Preventive Care Management Program (PCMP) is a tax-advantaged wellness benefit model that allows employers to reduce FICA payroll taxes while providing employees with qualifying preventive health services.
The structure is IRS-compliant and utilizes long-established tax codes—including Sections 105(b), 106(a), and 213(d)—to fund wellness benefits in a way that saves the employer money and costs the employee nothing in take-home pay.
How a PCMP Works (At a Glance)
Here’s the typical flow of a PCMP wellness benefit:
Employees contribute to the plan through a pre-tax deduction from their paycheck.
The same amount is reimbursed to them post-tax on the same paycheck—so their net pay stays the same.
Because of the reduced taxable income, the employer pays less in FICA taxes (Social Security and Medicare).
The funds from the deduction are used to provide actual wellness services like coaching, telemedicine, and Rx discounts.
The program is fully compliant and delivers value to both the employer and the employee.
What Benefits Are Included in a PCMP?
The PCMP wellness benefit typically includes:
Preventive care coordination
24/7 telehealth access
Prescription discount programs
Chronic disease management tools
Mental health support and coaching
These services qualify as medical care under Section 213(d) and are delivered by licensed vendors under strict compliance protocols.
Why Employers Use PCMPs
Here are the key reasons PCMPs are gaining traction:
Tax Savings
Employers save an average of $600+ per employee, per year in FICA taxes—without reducing wages or adding administrative burden.
No Net Cost to Employees
Employees don’t lose any take-home pay. They receive the same paycheck, plus valuable health services.
ACA & IRS Compliance
When paired with Minimum Essential Coverage (MEC), PCMPs help satisfy ACA Penalties A & B, while staying compliant with IRS sections 105(b), 106(a), and 213(d).
Low-Lift Implementation
Modern PCMP platforms like Ficava offer turnkey setup, payroll integration, and full legal documentation with no disruption to your current benefits stack.
Who Should Consider a PCMP?
PCMPs are ideal for:
Employers with 10+ W-2 employees
Businesses seeking tax-efficient benefit strategies
Companies facing rising payroll or healthcare costs
Brokers looking for turnkey solutions to offer clients
Industries that see strong adoption include:
Construction
Hospitality
Healthcare
Retail
Manufacturing
Is This the Same as a Wellness Plan or HSA?
No. While a PCMP delivers wellness benefits, it is not an HSA or traditional wellness program. The PCMP is structured specifically to generate employer tax savings while delivering real preventive care value to employees.
It is also different from group insurance—it is often offered alongside your existing plan, not as a replacement.
Final Thoughts
A Preventive Care Management Program is one of the few benefit strategies that delivers clear value to both employers and employees:
Offer impactful wellness services
Keep employee net pay intact
Stay 100% compliant
If you’re looking for a smart way to enhance your benefits strategy, improve retention, and protect your bottom line, a PCMP is worth a closer look.
Ready to explore the PCMP wellness benefit for your business?
Schedule a free savings consultation - we’ll show you how it works, start to finish.