DataPath Administrative Services is proud to have been chosen by Arkansas Blue Cross Blue Shield (BCBS) as their preferred provider for both FSA and HRA plan administration.
As benefit costs continue to rise, professional account administration is critical to the success of plans centered around tax-advantaged benefit accounts. Click the services below to find out how you can save money on taxes and payroll while offering your employees a competitive benefits package.
The need to supplement health care coverage with added benefits is quickly becoming a priority.
A Cafeteria Plan allows employees to pay for employer-sponsored health, dental, supplemental, and group term life premiums, as well as set up flexible spending accounts for medical expenses, dependent care, and personally-owned health policies reducing taxable compensation. This increases take-home pay and reduces employer payroll taxes.
We offer three ways to administer a Cafeteria Plan:
FSAs reimburse employees for expenses like deductibles, coinsurance, co-pays, prescription drugs, vision expenses, dental expenses, day care services and privately owned insurance policies.
Similar to a POP, an FSA permits pretax payment of insurance premiums and offers 3 additional benefits to employees:
- Health Flexible Spending Accounts. Employees use payroll withholding of pretax dollars to pay for out-of-pocket medical expenses.
- Dependent Care Flexible Spending Accounts. Employees use payroll withholding to pay for work-related expenses associated with care of a dependent.
An FSA encompasses all the aspects of a POP with these value-added services:
- Case setup / employee communication
- Online / onsite enrollment
- Claims submission to DataPath Administrative Services
- Claims adjudication tailored to employer schedule
- Payments via EFT or check
- Online participant inquiry and reporting
- Online employer module and reporting
Allows employees to pay their premiums for insurance such as health, dental, vision, disability, accident and group life (up to $50,000) on a pretax basis.
- Provide legal documents and administrative forms
- Phone support for legal and administrative practices
- Process and maintain change of status elections
- Benefit election forms to initiate administration records
- Reports for payroll setup for employee elections
- Pay cycle contribution reports to reconcile with payroll
- Nondiscrimination test and reports to employer, as needed
- Advise plan administration of known compliance issues
A combination of a POP and an FSA, a Full-Flex Plan allows employees to use pretax dollars toward medical and dependent care expenses.
As healthcare costs rise, many employers feel the only solution is to shrink benefit plans. Instead, consider establishing a HSAToday® Health Savings Account (HSA) in combination with your Consumer Directed Health Plan.
What is an HSA?
Health Savings Accounts (HSA) are tax-free savings accounts used to save money to help pay for qualified health care expenses. Combined with a High Deductible Health Plan (HDHP), the HSA pays for qualified and routine expenses until the individual meets the deductible, when insurance coverage takes over. Unused funds roll over from year to year and earn tax-free interest, increasing the benefit of today’s savings.
HSA account owners get a triple dose of tax benefits: tax-free contributions, disbursements, and interest earned. In addition, you the employer benefit from payroll tax savings, lower insurance premiums and increased employee morale.
DataPath Administrative Services offers the following services with HSA accounts:
- Phone support for employers and employees
- Medical expense certification
- Electronic storage of necessary documentation (our patented ClaimsVault™)
- Online access to account information 24/7
Mutual Fund Investment
With DataPath, participants have the ability to invest their HSA money in mutual funds, increasing the tax-free earnings. After taking an online risk analysis quiz to help determine his or her individual risk tolerance, a participant can select from one of five pre-defined investment portfolios and rest assured that their funds are under regular review from a registered investment advisor. Experienced investors who want greater control over investments may choose the custom model and select their own investment strategies with personal selection of funds and investment percentages.
DataPath offers the following services with HSA accounts:
- Online test to determine investment profile
- Extensive source of information on investments
- Phone support for employers and employees
How Do I Get Started?
Health Reimbursement Arrangements (HRAs) allow both employers and employees to save on the cost of healthcare. They are employer-funded accounts from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year. Unused amounts may be rolled over to be used in subsequent years. The employer funds and owns the accounts.
HRAs are one of the most flexible types of employee benefits plans and, with some limitations, can be designed to suit the specific needs of employer and employees alike. HRA plans can also cover retired employees (and their spouses and tax dependents). The primary requirements for an HRA are that the plan must be funded solely by the employer and cannot be funded by salary reduction, and that the plan may provide benefits for substantiated medical expenses only.
DataPath Administrative Services offers HRA plans with Claims Crossover to provide the fastest possible claims payment to your employees without them having to first file a claim or pay an eligible expense. Each time claims are processed, the insurance carrier compiles Explanation of Benefits (EOB) information into an electronic data interchange (EDI) file and transmits it to us. In response, we automatically file an HRA claim for each eligible EOB. Employees receive their HRA claims payments very quickly, often at the same time (or even sooner) than the associated EOBs arrive by mail from the carrier.
In cooperation with DataPath, Inc., our parent company, we developed HRA105.com to provide more information on how HRAs work and answers to frequently asked questions.
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. Applying to companies with at least 20 employees, COBRA gives employees the right to pay premiums for and keep the group health insurance that they would otherwise lose after reducing their work hours or being terminated (whether voluntary of involuntary). Most people can keep the insurance for up to 18 months; some are able to keep it a few months longer.
The employee’s qualified spouse or children may enroll in COBRA even if the employee does not. Qualifying events for the spouse or dependents of the employee who had been covered on the employee’s health plan include the insured employee’s death; divorce or legal separation from the insured employee, and loss of dependent status under the insurance plan. Another qualifying event for an employee’s spouse or dependents occurs when an employee becomes eligible for Medicare and the employer takes him or her off the health insurance plan.
COBRA is a standard component of any IRS corporate audit and the penalties for non-compliance are steep. DataPath Administrative Services has trained staff dedicated to COBRA administration, making sure everything is completed in a timely and accurate manner.
Employees can reduce their taxable income by enrolling in their company sponsored Transit/Parking Plan. These tax savings can apply to one or more of the following options:
- Parking and Mass Transit Conversion Accounts: Allows individual to pay for employer-provided parking and mass transit benefits directly from paycheck. There are no claim forms to fill out.
- Parking Reimbursement Account: Allows individual to pay for daily or monthly parking expenses incurred in the process of commuting to and from work. May elect to have up to $255 deducted from monthly paycheck tax-free.
- Mass Transit Reimbursement Account: Allows individual to pay for mass transit expenses incurred in the process of commuting to and from work. Up to $255 per month can be deducted from pay tax-free for qualified mass transit expenses.
DataPath Administrative Services offers MasterCard® debit cards that automatically reimburse employees for eligible pre-tax expenses. Our parent company, DataPath, Inc., is an end-to-end card processor, meaning that all of the primary functions related to card issuance and transaction processing reside internally with DataPath. No other third-party administrator can offer Arkansas employers this level of integration.
Depending on the employer plan, employees are issued either a Summit™ debit card or a mySourceCard®. These can be used to pay for health care and dependent care expenses at qualified locations that accept MasterCard including doctor and dentist offices, pharmacies, optometrists and vision care stores, hospitals, and more. Approved expenses are automatically deducted from their pre-tax accounts without the hassle of claim forms or reimbursement checks.
Benefits debit cards can integrate multiple benefit plans. HSAs, FSAs, HRAs, Transit and Parking, and Dependent Care purse values can all be loaded onto one card, simplifying payments and reimbursements.