Services
Types of Plans:
Premium-Only-Plans (POP)
Flexible Benefit Plans
Health Reimbursement Arrangements (HRA)
Health Savings Account (HSA) Integration
PREMIUM-ONLY-PLANS allow employees to pay for certain health, dental and vision insurance plans with tax-free dollars. This program reduces the cost of the employee share of premiums through reduced taxation. No federal, state, Social Security or Medicare taxes are paid on premiums run through a POP Plan. The employer also saves on matching Social Security and Medicare contributions. Everyone wins.
These cost-effective programs generally save the employer 100% or more of the first year cost of implementing a plan.
FlexMagic helps you with plan design, implementation and ongoing support of this important option.
FLEXIBLE BENEFIT PLANS are employer-sponsored programs that allow employees to use tax-free dollars to pay for many regular family expenses. The dollars employees contribute to the Plan are not subject to Federal and State Withholding Taxes or Social Security and Medicare contributions. These payroll tax savings result in an increase in take-home pay for participating employees and a reduction in payroll taxes for both the employee and the employer.
Tax-free expenses which can be paid through a Flexible Benefit Plan include:
- Dependent care expenses necessary to employment
($5,000 maximum per family per calendar year) - Out-of pocket medical, dental, and vision expenses for the family
- Health Savings Account contributions
- Employee-paid health, dental and vision insurance premiums
- Employee-paid disability insurance premiums
- Employee-paid term life insurance premiums up to $50,000 in death benefit
After-tax choices may also be offered on a voluntary basis such as long-term care insurance; critical illness insurance; universal life insurance, group auto, home and rental insurance; and Pre-Paid Legal Services and Identity Theft programs.
FlexMagic Consulting can help employers determine if a Flexible Benefit Plan will work effectively for the company and its employees. We help design, communicate, administer and support a Flexible Benefit plan to meet a company's specific needs. There are a number of consulting options available.
Consulting Services / Basic Package
Our Basic Consulting Services package is specially designed to meet the needs of the small employer. It includes: a plan design phone consultation, plan document and summary plan description, enrollment materials (English and/or Spanish), online employee education, completion of certain year-end discrimination tests, periodic Update Newsletters and unlimited phone and e-mail support during the plan year.
Higher level consulting services or custom designed consulting services are modified to meet the needs of larger employer groups. Contact us for details and a fee quote.
Flexible Benefit Plan Administration Support
FlexMagic offers administrative support in two ways:
- Third-Party Administration Services
Option I: FlexMagic reviews Flexible Benefit Plan claims and calculates participant reimbursement values. A report is provided to the employer who then reimburses the spending account dollars via direct deposit, employee paycheck expense item or prepares a company check. This service is offered with per pay period or monthly reimbursement cycles.
Option II: FlexMagic reviews claims and directly reimburses the participant. Claims are reviewed and processed daily. Reimbursements are made through direct deposits, prepared checks or through the use of the Debit Card. - Compliance and technical support for your existing reimbursement method can also be provided.
Other Stand-Alone Flexible Benefit Plan Services
- Discrimination Testing
- 5500 Form Completion (if required)
- Compliance Check-ups
- Plan Documents and Summary Plan Descriptions
Health Reimbursement Arrangements (HRAs)
HRAs began in 2002 and allow an employer to pay for health care expenses for its employees and/or retirees as a tax-free company-paid benefit.
- Eligible expenses can include: health, dental, vision, supplemental health and long term care insurance premiums.
- Out-of-pocket health care expenses can include: prescriptions, glasses, dental, deductibles, doctor visits and certain over-the counter medications.
The employer decides what expenses will be eligible for reimbursement, who can be reimbursed (employee only and/or family) and how much will be reimbursed each plan year. Unused dollars can be carried forward if the employer chooses, and a limit can be set on how much can accumulate from year to year.
The employer does not have to pre-fund the HRA; benefits are paid from the general fund monies when an employee incurs an eligible expense.
In essence, this is an employer-provided health plan and often works well with increased health insurance deductibles. This allows for cost-sharing of the increased out-of-pocket health care expense between the employer and the employee.
FlexMagic works with you and your insurance consultant to ensure the selected HRA design will meet the employer's objectives and provides design, implementation, support and third-party administration services; including the required Medicare Secondary Payer reporting.
HEALTH SAVINGS ACCOUNTS are individually owned trust accounts that allow tax-free dollars to be set aside for out-of-pocket health care expenses for the entire family. These accounts can be both employer and employee-funded. They can be funded tax-free through a Premium-Only-Plan or Flexible Benefit Plan. These accounts can be offered along with an HRA when proper design protocol is followed. Integration of the HSA allows the trust account to be funded tax-free through payroll deduction.
FlexMagic provides design, implementation and support services for this valuable option.
To learn more about these programs and our services
call our Sales Team at 800-888-9084 or select Request a Quote.