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Employee Benefit Plans
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans:
Substantially all Encompass Health employees are eligible to enroll in Encompass Health-sponsored healthcare plans, including coverage for medical and dental benefits. Our primary healthcare plans are national plans administered by third-party administrators. We are self-insured for these plans. During 2022, 2021, and 2020, costs associated with these plans, net of amounts paid by employees, approximated $174.5 million, $166.0 million, and $145.4 million, respectively.
The Encompass Health Retirement Investment Plan (the “RIP”) is a qualified 401(k) savings plan. The RIP allows eligible employees to contribute up to 100% of their pay on a pre-tax basis into their individual retirement account in the plan subject to the normal maximum limits set annually by the Internal Revenue Service. Encompass Health employees who are at least 21 years of age are eligible to participate in the RIP and all contributions to the plan are in the form of cash. Encompass
Health’s employer matching contribution under the RIP is 50% of the first 6% of each participant’s elective deferrals, which vest 100% after three years of service. Participants are always fully vested in their own contributions.
Employer contributions to the RIP approximated $28.7 million, $26.4 million, and $23.3 million in 2022, 2021, and 2020, respectively. In 2022, 2021, and 2020, approximately $1.4 million, $1.1 million, and $1.3 million, respectively, from forfeited accounts were used to fund the matching contributions in accordance with the terms of the RIP.
Senior Management Bonus Program—
We maintain a Senior Management Bonus Program to reward senior management for performance based on a combination of corporate or regional goals for all periods presented. The corporate and regional goals are approved on an annual basis by our board of directors as part of our routine budgeting and financial planning process. The program applies to persons who join the Company in, or are promoted to, senior management positions. In 2023, we expect to pay approximately $14.8 million under the program for the year ended December 31, 2022. In March 2022 and 2021, we paid $23.4 million and $14.1 million, respectively, under the program for the years ended December 31, 2021 and 2020.