Third Party Administration
B E N E F I T S
FSA
B3PA’s FSA products include Health Flexible Spending Accounts, Limited Purpose Flexible Spending Accounts and Dependent Care Flexible Spending Accounts. Health Flexible Spending Account The Health FSA allows your employees to use pre-tax deductions from their paychecks, or employer funding, to pay for qualified health expenses. Participant elections are made once yearly, during open enrollment, or when a qualified life event is met. Unused amounts at the end of the plan year are forfeited to the plan. Qualified expenses include: medical, dental, vision and prescription costs. Other expenses, like over-thecounter drugs, can be eligible with a doctor’s approval. Limited and Post-Deductible Options for HSA Participants Employees who elect a Health Savings Account (HSA) in conjunction with a High Deductible Health Plan are ineligible for a full-fledged FSA. There are still FSA options for these employees: Limited Purpose FSA: Eligible to reimburse only dental and vision expenses Post-Deductible FSA: Reimburses dental and vision expenses only, until the IRS statutory deductibles are met where it converts to a full FSA, able to reimburse all FSA eligible expenses Combination Limited Post-Deductible FSA: Reimburses dental and vision expenses; after the IRS statutory deductibles are met, eligible to reimburse all FSA expenses
Dependent Care Flexible Spending Account
The Dependent Care Account uses pre-tax salary reductions to pay for qualified dependent care expenses, such as child care of the care of an elderly parent.
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