FSA Case Study #1
COMPANY, small technology company, had 35 of its 75 employees participating in its Health Care and Dependent Care Flexible Spending Accounts (FSAs). Due to relatively low participation, Company administered the accounts in-house. The payroll team processed pre-tax deductions for coverage and the accounting team reviewed requests for reimbursement. Employees were becoming more and more uncomfortable reviewing employees’ medical expenses, particularly as HIPAA privacy issues became more commonplace in the news. Management was concerned about keeping personal medical information on company property
Company engaged BAS to provide FSA administration services. Company worked with BAS to create an account for each FSA participant in MyEnroll. BAS offered FSA participants a debit card to pay for eligible expenses at the point of sale, permitting automatic substantiation for FSA purchases. Employees processed other claims by sending receipts to BAS on BAS easy-to-read forms, and received prompt reimbursement checks. If an employee did not provide sufficient documentation for a claim, BAS contacted the employee and requested additional information. Company’s accounting team received a report of FSA utilization, but removed itself from anything to do with actual claims reimbursed. BAS provided the Company with information to distribute to all employees, not just FSA participants, describing the benefits of participating in an FSA.
FSA Case Study #2
COMPANY, a consumer packaged goods company, had 325 of its 930 employees participating in its Health Care and Dependent Care Flexible Spending Accounts as of the beginning of the year. Company used an FSA Administrator who did not provide timely claims processing, did not offer a prepaid debit card for transactions and was not responsive to questions from Company benefits manager or participants. Company had two months remaining in the plan year but was frustrated with the lack of personal attention and wanted to make a change. Company was considering dropping the FSAs altogether.
Company called their health insurance broker who suggested finding out more about the services BAS could provide. BAS met with the Company benefits manager, provided an on-line webinar and reviewed the requirements for establishing a new account. Within 5 days of signing a contract with BAS, completing the payroll schedule and signing the debit card banking forms, BAS had Company’s account set up in the BAS system. At the same time, MyEnroll.com was available to employees as an on-line, self-service open enrollment vehicle for employees to make their FSA elections.
BAS coordinated with the previous FSA administrator to schedule the transition, clearly establishing the last date on which the previous administrator would process claims. BAS received and added to MyEnroll an electronic file identifying employees enrolled in the FSA for the year, claims paid to date and current balance remaining.
Company was surprised by the seamless transition of business. Using BAS and MyEnroll, Company transferred all participants’ accounts without reimbursement disruption. Through MyEnroll, employees have 24/7 access to their accounts and can view and monitor elections, claims paid, contributions to date and outstanding balances. Employees can also elect for subsequent plan years through the New Plan Year Account Wizard.