As a brokerage familiar with medical insurance and employee benefit compliance issues, we can evaluate if an employer has a need for a third party COBRA/FSA administrator. 


COBRA

AccesseHR can help offload the tedious and heavily compliance laden COBRA process. The Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) was brought into law because too many employees were losing important medical coverage or experiencing continuous coverage issues.

A qualifying event is any one of the following that causes a loss of coverage:

  • Termination of employment or reduction of hours
  • Divorce or legal separation
  • Death of the covered employee
  • Covered employee becomes entitled to Medicare
  • Dependent ceases to be eligible as a dependent under the terms of the plan
  • Employer’s filing of a bankruptcy proceeding (applies only to retirees)

From a compliance point-of-view, COBRA is jointly enforced by the Internal Revenue Service, the U.S. Department of Labor and the Department of Health and Human Services. Companies that are not in compliance with these provisions can face penalties.

Accesse HR offers relief from managing the COBRA process by letting our customers outsource the headaches associated with collecting employee benefit data, census information, dependants and life events, managing notification, and ongoing administration.

For large employers, AccesseHR uses the administrative resources of Vita Administration


A Flexible Spending Account (FSA)

Also commonly referred to as an FSA, a Flex Plan or a Section 125 Cafeteria Plan – is an employee benefits plan regulated by Section 125 of the Internal Revenue Code. FSAs allow employees to have money withheld from their paychecks on a pre-tax basis, and use this money for qualified medical or dependent care expenses.

Our experienced staff will present open enrollment meetings to your empoyees to educate everyone on this benefit. You will also have a dedicated staff member to call and inquire about claims processing and eligible medical expenses.

Here are two examples of how much money you can save:

Example 1 Example 2
FSA No FSA FSA No FSA
Annual Taxable Income: $30,000 $30,000 $55,000 $55,000
Pre-tax FSA contribution: $1500 -0- $2687 -0-
Taxable income: $28,500 $30,000 $52,103 $55,000
Federal income and Social Security (FICA) taxes: ($6,078) ($6,418) ($13,568) ($14,516)
After-tax dollars spent on eligible health care expenses: -0- ($1,500) -0- ($2,879)
After after-tax income: $22,422 $22,082 $38,535 $37,588
Savings with an FSA: $340 None $947 None
*This example is intended to demonstrate a typical tax savings for a married participant with zero withholding allowance and 7.65 percent FICA taxes. Dollar figures are rounded. Actual savings will vary based on your individual tax situation. You should consult a tax professional for more information on the tax implications of your participation in your Health Care FSA.