FSA Administration

FSA AdministrationFlexible Spending Accounts (FSAs) save money. Having The Foley-Connelly Benefits Group handle FSA Administration saves you time and keeps you in compliance with complicated Federal regulations.

It’s that simple.

Double-digit rate hikes, soaring prescription costs, limited alternatives – today’s benefits climate is hard hitting.

Employers are forced to address the situation by raising employee contributions or cutting benefits.

Dealing with progressively more expensive employee benefits has not been easy for employers or employees.

Employers working with The Foley-Connelly Benefits Group to offer a Flexible Benefits Plan help themselves by saving thousands annually through decreased payroll taxes. We offer expert handling of medical and dependent care spending accounts. Employees can increase spendable income while gaining a powerful resource to handle rising medical costs. Our full-service FSA Administration offers client and participant materials and 24/7 participant access to account information.

HRA Administration

HRAs are another major part of the growing trend toward greater health care consumer responsibility. With Health Reimbursement Arrangement (HRA) Administration from The Foley-Connelly Benefits Group an HRA becomes a timely, powerful resource that benefits both you and your HRA participants. An HRA can be used in conjunction with a high deductible health plan to curb premium costs.

HRA Administration from The Foley-Connelly Benefits Group you get:

  • Quick claims adjudication and turnaround for health and dependent care expenses
  • Direct deposit
  • Nondiscrimination testing
  • FSA enrollment support
  • Certified Flexible Compensation (CFC) experts on staff
  • Toll-free Call Center
  • 24-hour web resources
  • Debit Card
  • Benefits industry news

When it comes to employee benefit administration, the thing to remember is that The Foley-Connelly Benefits Group will tailor a benefits plan design exclusively for your company. Through individual consultations, we’ll help ensure that your plan design fits your business needs. As your company grows, we’ll be there to adjust your plan to fit your changing needs.

Complete your Benefits Administration package with FSA Administration, HRA Administration, Direct Billing and Premium Only Plans (POP) from The Foley-Connelly Benefits Group.

Start saving with HRA and FSA Administration from The Foley-Connelly Benefits Group …

COBRA Administration

When you partner with The Foley-Connelly Benefits Group you are have partnered with Benefits Professionals! We have the tools you need to make COBRA compliance easy.

More importantly, by outsourcing your COBRA compliance program to The Foley-Connelly Benefits Group, you will help protect your company from potentially devastating COBRA failures.

We build your compliance service to fit your needs. The Foley-Connelly Benefits Group COBRA Administration also offers you:

  • Web-based COBRA reporting
  • ALL required notices for a complete COBRA program
  • Management of COBRA elections and premium payments
  • Superior customer support by COBRA Certified Professionals
  • An ERISA attorney on staff
  • Updates on regulations, legislation and court cases
  • Support for state continuation inquiries
  • Qualified Beneficiary website and call center support
  • Answers to all of your COBRA questions

Do you need help administering HIPAA Certificates of Creditable Coverage or Direct Billing for retirees or leaves of absence? Simply add these services to your COBRA administration package.

HIPAA Certificates of Creditable Coverage must be sent to all employees and family members losing insurance coverage. If your carrier isn’t sending certificates or if you are self-insured, consider outsourcing to The Foley-Connelly Benefits Group.

When you partner with The Foley-Connelly Benefits Group, you will be provided administrative support with the assurance that you are in compliance with HIPAA’s myriad requirements.

HSA / HRA

A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Unlike a Flexible spending account (FSA), funds roll over and accumulate year over year if not spent. HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA account in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.

HSAs are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. HSAs encourage saving for future health care expenses, allow the patient to receive needed care without a gate keeper to determine what benefits are allowed and make consumers more responsible for their own health care choices through the required High-Deductible Health Plan.

Health Reimbursement Accounts, or Health Reimbursement Arrangements, (HRAs) are IRS-sanctioned arrangements that allow an employer, as agreed to in the HRA plan document, to reimburse for medical expenses paid by participating employees. HRAs reimburse only those items (copays, coinsurance, deductibles and services) agreed to by the employer which are not covered by the company’s selected standard insurance plan (any health insurance plan, not only high-deductible plans). These arrangements are described in IRS Section 105.

Qualified claims must be described in the HRA plan document at inception, i.e., before reimbursing employees for those medical expenses. Arrangements (medical services, dental services, co-pays, coinsurance, deductibles, participation) may vary from plan to plan, and an employer may have multiple plans in place, allowing much flexibility.

The employer is not required to prepay into a fund for reimbursements, instead, the employer reimburses employee claims as they occur. Reimbursements of qualified claims are tax-deductible for the employer.

Reimbursements claimed by the employee are tax free (not included in W2 earnings), provided they are tied to qualified health care expenses (as defined in Section 105). HRAs are initiated by the employer and serviced by a third-party administrator or plan service provider; the employee does not pay for the right to participate. The employer may provide in the HRA plan document that credit balances in an employee’s HRA account can be rolled over from year to year like a savings account. The employer decides if the funds are rolled from year to year and how much rolls over (which can be either a flat amount or a percentage).

HRAs are another major part of the growing trend toward greater health care consumer responsibility. With Health Reimbursement Arrangement (HRA) Administration from The Foley-Connelly Benefits Group an HRA becomes a timely, powerful resource that benefits both you and your HRA participants. An HRA can be used in conjunction with a high deductible health plan to curb premium costs.

With HRA Administration from The Foley-Connelly Benefits Group you get:

  • Quick claims adjudication and turnaround for health and dependent care expenses
  • Nondiscrimination testing
  • FSA enrollment support
  • Debit Card
  • Benefits industry news

When it comes to employee benefit administration, the thing to remember is that The Foley-Connelly Benefits Group will tailor a benefits plan design exclusively for your company. Through individual consultations, we’ll help ensure that your plan design fits your business needs. As your company grows, we’ll be there to adjust your plan to fit your changing needs.

Complete your Benefits Administration package with FSA Administration, HRA Administration, Direct Billing and Premium Only Plans (POP) from The Foley-Connelly Benefits Group.

Start saving with HRA and FSA Administration from The Foley-Connelly Benefits Group …

Flexible Spending Accounts

We all know that budgeting, saving, and investing are basic elements of sound financial planning, but sometimes we overlook things that can have a profound effect on our financial situation. Employer-provided benefits is a prime example.

401(k) plans, Section 125 cafeteria plans (which have nothing to do with eating at work!), group insurance plans, even vacation benefits must be understood in order to work to your best advantage, and therein lies the problem. These benefit plans can be complex and confusing, and our employers don’t always explain them well enough to allow the average person to make the best choices for their personal situation.

Let’s demystify employment benefits, beginning with flexible spending plans.

What Is a Flexible Spending Account?

A Flexible Spending Account (FSA), also called a flex plan or reimbursement account, is an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax basis (there are also similar accounts for dependent and child-care expenses).

If you expect to incur medical expenses that won’t be reimbursed by your regular health insurance plan, you should be taking advantage of your employer’s FSA if one is offered.

How Does a Flexible Spending Account Benefit Me?

An FSA saves you money by reducing your income taxes. The contributions you make to a Flexible Spending Account are deducted from your pay BEFORE your Federal, State, or Social Security Taxes are calculated and are never reported to the IRS. The end result is that you decrease your taxable income and increase your spendable income. You can save hundreds or even thousands of dollars a year.

How Do Flexible Spending Accounts Work?

At the beginning of the plan year (which usually starts January 1st), your employer asks you how much money you want to contribute for the year (there are limits).

You have only one opportunity a year to enroll, unless you have a qualified “family status change,” such as marriage, birth, divorce, or loss of a spouse’s insurance coverage. The amount you designate for the year is taken out of your paycheck in equal installments each pay period and placed in a special account by your employer.

As you incur medical expenses that are not fully covered by your insurance, you submit a copy of the Explanation of Benefits or the provider’s invoice and proof of payment to the plan administrator, who will then issue you a reimbursement check.

What Expenses Are Eligible for Reimbursement?

Any expense that is considered a deductible medical expense by the Internal Revenue Service and is not reimbursed through your insurance can be reimbursed through the Flexible Spending Account. Examples include:

  • Fees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and Christian Science practitioners Contact lenses and eyeglasses
  • Fees for hospital services, qualified long-term care services, accident and health, and qualified long-term care insurance premiums, nursing services, laboratory fees, prescription medicines and drugs, and insulin.
  • Acupuncture treatments
  • Inpatient treatment at a center for alcohol or drug addiction
  • Smoking-cessation programs and prescribed drugs to help nicotine withdrawal
  • False teeth, hearing aids, crutches, wheelchairs, and guide dogs for the blind or deaf
  • Fees in excess of reasonable and customary amounts allowed by your insurance
  • Cost of vasectomies, hysterectomies and birth control
  • Non-elective cosmetic surgery
  • Co-payments on covered expenses
  • Deductibles
  • Braces
  • Prescription drugs or prescription co-pays

How Do I Decide How Much to Contribute to My Flexible Spending Account?

It’s important to give some thought to calculating how much money to contribute for the year, because if you put in more money than you need, by law, you lose it. You have three months after the end of the calendar year to submit claims for eligible expenses incurred during the previous calendar year. Any money left in your account after the three months will be forfeited.

To determine how much to contribute, make a list of the expected out-of-pocket medical expenses for you and your dependents for the next year. For example, if you always exceed your deductible, include the deductible amount in your calculation. Be conservative so you don’t risk forfeiting any money.

Flexible Spending Accounts (FSAs) save money.

Having The Foley-Connelly Benefits Group handle FSA Administration saves you time and keeps you in compliance with complicated Federal regulations.

It’s that simple.

Double-digit rate hikes, soaring prescription costs, limited alternatives – today’s benefits climate is hard hitting.

Employers are forced to address the situation by raising employee contributions or cutting benefits.

Dealing with progressively more expensive employee benefits has not been easy for employers or employees.

Employers working with The Foley-Connelly Benefits Group to offer a Flexible Benefits Plan help themselves by saving thousands annually through decreased payroll taxes. We offer expert handling of medical and dependent care spending accounts. Employees can increase spendable income while gaining a powerful resource to handle rising medical costs. Our full-service FSA Administration offers client and participant materials and 24/7 participant access to account information.

Section 125 Plans

Foley-Connelly is your primary source for affordable IRS and DOL compliant Section 125 plan documents that allow employers and their employees to pretax, or avoid paying income tax on group health insurance premiums, healthcare expenses not covered by insurance, dependent and adult daycare, as well as parking and commuter expenses.

The Internal Revenue Service under Section 125 of the Code maintains that employers must establish a written plan document before these tax deductions are taken. The Department of Labor requires employers to establish a Summary Plan Description or SPD in easy to understand language that should be distributed to every employee participating in the plan. Foley-Connelly provides employers with everything they need to be fully compliant with these requirements. Foley-Connelly Section 125 plan documents are custom prepared for each client. These are not “fill-in the blank” or “check-box” templates.

With the addition of HSA and Section 125 plans and Section 105 HRA plans, employers have more options to reduce health insurance premiums and taxes through the use of high deductible health plans (HDHP). Some of the premium savings can be used to cushion the effect of these new high deductibles to employees through either employee funded (HSA) or employer funded (HRA) spending accounts.

Section 125 Cafeteria Plan administration is available for those clients who prefer to outsource Section 125 FSA, HSA and or HRA administration. We provide several options including access to account information and funds via debit card.