Once you have linked a bank account, you will need to deposit an upfront payment to satisfy the Required Minimum Funding (RMF) which applies to every plan. Keep in mind that there are other components to consider, such as the plan benefit details and expected plan usage.
After making the payment, our team will ensure that the minimum balance is maintained from there on out!
Calculating your RMF amount
So, how do you know the amount needed to satisfy the RMF for the plan? You can calculate the amount following the RMF Formula, which is:
Total Participants x Max allowable spend x Expected Usage x 10% RMF
Formula Terminology:
Max Benefit | Infertility Plan lifetime benefit is $20,000 |
2% Usage | Estimated percent that will enroll in the Plan at any one time |
10% RMF | The required minimum will be held in the bank account once the plan starts. Minimum deposit of $10,000 OR one Lifetime Employee Max spend is required. |
Example
PPT: 1,000 Employees
Max Benefit: $20,000
2% Usage: 20 employees/PPTs
10% RMF: $40,000
1,000 x $20,000 x 2% x10%=
$20,000,000 x 2% x 10%
$400,000 x10%
$40,000 = Total RMF
Questions? Reach out to your account manager for additional information.