Why SBA for your clients’ FSA Plan Administration?
Flexible Spending Accounts remain a valuable tool for helping employees pay for out-of-pocket medical expenses on a pre-tax basis. In fact, today, these plans have more options available to increase access to contributions.
SBA will work with your client to explain not only how an FSA plan works, but how these new plan options could help employees avoid the use-it-or-lose it part of the plan – one of the drawbacks of participating in the past. We will work with your client to recommend a plan design that suits for their needs based on employee turn-over.
These plan design options include:
- Issuance of debit cards for qualified expenses.
- $500 Carry-Over provision.
- 5 Month Extended Grace provision.
- Limited Purpose FSA accounts allowing HSA participants to participate in an FSA on a limited basis preventing them from having “impermissible coverage.”
- Online access to participant account balances with individual claim detail history.
For ongoing FSA administration, SBA will:
- Provide a signature-ready group application to the decision-maker based on plan design and administrative reimbursement method
- Create an enrollment handout to be used at enrollment meeting(s)
- Send a representative, depending on location, to the employer location(s) to explain how an FSA works
- Enroll participants in the plan and send a participant handout
- Draft new plan documents which include Adoption Agreement, Plan Document and Summary Plan Description
- Conduct non-discrimination testing of the plan and let the employer know if participant elections need to change to meet testing demands
Better together: FSA and COBRA administration
Working with SBA for both your clients’ FSA and COBRA administration provides additional advantages. Did you know that a Health Flexible Spending Account is a COBRA-eligible benefit? When SBA provides your clients with COBRA administration, we don’t have to ask a) how much the participant elected in the Health FSA, b) how much was contributed, and c) how much was reimbursed in order to calculate the Health FSA COBRA premium. That information is already in our system, saving your clients time and effort.
Get a quote for your clients today.