Administration

Third Party Administration is an integral component to your benefits program. We offer a wide spectrum of administrative services with the most sophisticated cutting edge technologies to insure simplicity for both employer and employee. Debit cards are made available to all employees enrolled in a Flexible Spending Accounts and Health Reimbursement Accounts or Health Savings Accounts. A single debit card can be used for a combination of any such accounts with the ability to reconcile which account a payment is applied towards. On line balances and a dedicated representative for each account are available to both employer and employee.
Comparison of HSA/HRA/FSA
  Health Savings Account (HSA) HRA Health Reimbursement Arrangement (HRA) Flexible Spending Account (FSA)
Account Ownership Employee/ Individual Employer Employer (held in employee's name)
Deposits made by Employer, employee or both Employer Employer, employee or both
Separate account Required; IRA-type account Not required; can be paid from employer assets Not required; can be paid from employer assets
Expenses covered Medical, dental, vision expenses, COBRA or retiree medical insurance premiums, LTC premiums or expenses Medical, dental, vision expenses or insurance premiums, LTC premiums Medical, dental, vision expenses
Accompanying plan requirements HSA qualified high deductible plan; 2006: at least $1,050 self-only, $2,100 family, and not be covered by any plan that covers medical expenses under the deductible No No
Maximum annual contribution 2006: $2,700 self-only, $5,450 family, not to exceed deductible None None
Maximum calendar year contribution 1/12 of the maximum annual contribution times the number of months eligible for the calendar year None None
Portability Full portability required Portability allowed at employer's discretion None
Roll-over Full roll-over required Roll-over allowed at employer's discretion None
Funds Availability As deposits are credited As deposits are credited; may be credited in a lump sum Full annual election available on first day of coverage (uniform coverage)
Claim Adjudication Not allowed; though participants must retain receipts Required Required
Compatibility with other savings accounts May be paired with HRA/ FSA if limited to amounts over deductible, or to dental/ vision only May be paired with FSA May be paired with HRA
Employer contributions Can be made on behalf of current employees (account extends to spouse and dependents if family medical coverage) Can be made on behalf of current, former employees, their spouses and dependents, and spouses and dependents of deceased employees Can be made on behalf of current employees (account extends to spouse and dependents)
ERISA plan Generally no Yes Yes
COBRA Does not apply Applies Applies
Retirees Can be covered Can be covered Can not be covered
Healthcare payment card Usage Yes Yes for active employees only Yes for active employees only
Contributions for Medicare eligible participants Contributions can not be made once an individual becomes eligible for Medicare No limits on contributions No limits on contributions
Qualified medical expenses Generally, those defined in section 213(d) not covered elsewhere Generally, those defined in section 213(d) not covered elsewhere Generally, those defined in section 213(d) not covered elsewhere
Distributions for non-medical expenses Can be made Can not be made Can not be made
Usage for ineligible expenses Allowed. Amounts included in income; subject to 10% penalty unless after account beneficiary's death, disability or attaining age 65 Not allowed; entire plan may be disqualified Not allowed; entire plan may be disqualified
Distributions for expenses incurred after individual is no longer eligible Can be made Can be made at employer's discretion, or if COBRA is elected Can be made if COBRA is elected
Coverage for sole proprietors, partners and 2% or more S-corp owners Yes, but not eligible to participate in cafeteria plan used to fund HSA in the workplace Can not be covered Can not be covered