Offering supplemental and ancillary benefits usually means a separate invoice from every carrier. NWGS Reverse Billing eliminates those bills. Northwest Group Services (NWGS), a licensed TPA, pays each carrier for you, so your team has no carrier invoices to review, reconcile, or pay. Whether your plan has two carriers or ten, the bills go away.

How It Works

1. You choose the carriers. Employers and their brokers pick the supplemental and ancillary plans that fit, across as many carriers as the plan needs.
2. Payroll keeps it simple. Each employee can have as little as one pre-tax deduction (Section 125 eligible premiums and FSA contributions) and one post-tax deduction (after-tax premiums). NWGS provides the amounts.
3. You send NWGS your payroll deductions. No carrier invoices to check and nothing to reconcile on your end.
4. NWGS pays every carrier. We handle the carrier payments for you and send you a discrepancy report so any issues are easy to spot and fix.

What’s Included

NWGS Reverse Billing covers your supplemental and ancillary benefits, such as:

• Dental
• Vision
• Life and AD&D
• Short-term and long-term disability
• Accident
• Critical illness
• Hospital indemnity
• Other supplemental and ancillary worksite benefits

Major medical (health insurance) generally stays billed directly between the employer and the health carrier.

For Employers

NWGS Reverse Billing eliminates carrier bills. There are no invoices to open, check, or pay, and no due dates to chase.

• No carrier bills. NWGS pays every supplemental and ancillary carrier for you.
• Nothing to reconcile. NWGS handles the carrier side, so your team doesn’t have to match invoices by hand.
• No due dates or payment addresses to keep up with. NWGS takes care of every carrier payment.
• Simpler payroll. Fewer deductions per employee make payroll setup easier and changes easier to manage.
• Accuracy. Our team reviews eligibility, effective dates, and premium amounts, and works to resolve billing and enrollment issues so you’re not overpaying and employees have the coverage they elected.
• Employees on leave. In many cases, NWGS can bill employees directly while they’re off payroll, such as during a leave of absence, and handle any refunds that come up, for coverage paid through a post-tax deduction.

For Brokers

• Placing multiple carriers gets easier. Recommend the best plan for each line of coverage without adding billing work for your client.
• Cleaner case administration. NWGS handles the carrier payments, so billing questions don’t end up on your desk.
• One partner for TPA services. NWGS Reverse Billing works alongside NWGS FSA, HSA, HRA/ICHRA, COBRA, and Section 125 administration.

For Employees

• Fewer paycheck deductions. Supplemental and ancillary benefits can come out in as few as two lines on each paycheck.
• Coverage you can count on. NWGS applies your deductions and pays each carrier, so the coverage you elected stays in place.

NWGS Reverse Billing: Frequently Asked Questions

What is NWGS Reverse Billing?

NWGS Reverse Billing replaces the separate invoice you get from each supplemental and ancillary carrier. You send NWGS your payroll deductions, and NWGS, a licensed TPA, pays each carrier for you, so your team has no carrier invoices to review, reconcile, or pay.

Which benefits does NWGS Reverse Billing cover?

It covers supplemental and ancillary benefits such as dental, vision, life and AD&D, short-term and long-term disability, accident, critical illness, hospital indemnity and other worksite benefits. Major medical (health insurance) generally stays billed directly between the employer and the health carrier.

How does payroll work with NWGS Reverse Billing?

Each employee can have as little as one pre-tax deduction, for Section 125 eligible premiums and FSA contributions, and one post-tax deduction for after-tax premiums. NWGS provides the amounts, and you send NWGS your payroll deductions.

How will we know if something doesn't match?

NWGS pays every carrier and sends you a discrepancy report so any issues are easy to spot and fix. NWGS counselors review eligibility, effective dates and premium amounts and work to resolve billing and enrollment issues.

What happens when an employee is on leave?

In many cases, NWGS can bill employees directly while they're off payroll, such as during a leave of absence, and handle any refunds that come up, for coverage paid through a post-tax deduction. Questions? Call NWGS at (888) 808-3008.

Sources

• IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits (cafeteria plans and pre-tax premiums)

Which premiums can be deducted pre-tax depends on your cafeteria plan document and IRS rules. Billing and leave practices reflect NWGS administration and your plan. This information is educational and not tax advice.

Questions? Call NWGS at (888) 808-3008, or write to NWGS, 8245 Farnsworth Road, Suite B, Waterville, Ohio 43566.

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