Section 125 plans allow employees to save by paying for benefits with before-tax dollars. Your company saves by paying lower matching Social Security and Medicare contributions.
Kilbride & Harris Insurance Services, LLC can provide you assistance in choosing the right company to administer your 125 plan.
Flexible Spending Accounts
One of the biggest challenges of installing a flexible spending account is educating your employees. Kilbride & Harris Insurance Services, LLC has established strategic partnerships with Flexible Spending account specialists. These firms can design your plan, communicate the plan to your employees, enroll participants, and implement and operate your plan.
Your employees are able to pay for out-of-pocket medical expenses and child care expenses with pre-tax dollars. This could mean substantial tax savings.
If you think the concept of a Flexible Spending Account is enticing you will want to talk to us about an H.S.A compatible plan which does not have a “use it or lose it” provision.
Section 105 / HRA Medical Reimbursement Plans
With skyrocketing group health insurance costs, many small employers are combating costs by dramatically increasing deductibles or decreasing co-insurance percentages. To soften the impact on employees, some companies are self-funding a portion of the employee’s unreimbursed medical expenses, through the use of a Section 105 plan in addition to the group health insurance. A section 105 plan that allows unused amounts to be carried over to the following year is called an “HRA” (Health Reimbursement Arrangement) according to IRS releases in July 2002.
Kilbride & Harris Insurance Services, LLC can assist with the implementation and administration of these types of plans by partnering you with companies we have already developed relationships with. Implementation services include the production of a plan document, summary plan description and employee forms (e.g. election form, claim form, COBRA form, etc.) and communications/enrollments. Administration services include claims processing, reimbursement checks, banking services, monthly employer reporting, quarterly employee reporting, nondiscrimination testing, and IRS Form 5500 preparation, etc.
As an employer are you concerned about moving your deductible from $500 to $1000? You may want to consider implementing and HRA to keep benefits at par.
Contact us to discuss your specific needs.