THE INNOVATIVE HEALTH CARE DELIVERY SOLUTION
Preferred Care will administer your Consumer Driven Service(s) with pride and accuracy. Please click on one of the above buttons for service descriptions. Specific services performed by PCI will include the following, depending upon type of service(s) selected:
* Plan design
* Account Set-Up
* Enrollment Materials
* Discrimination Testing
* Standard Plan Document
* Plan Amendments
* Claims Adjudication
* Toll Free Customer Service Access
* Monthly Reporting
* Form 5500 Schedule A Preparation
* Annual Forfeiture Reports
* Renewal Design, Plan Set-Up, and Enrollment Materials
* Pre-paid Debit Card
Please feel free to contact a Preferred Care professional for further information on the services listed above, or, to discuss how we may assist you in instituting one or more of these tax favored plans.
Flexible Spending Account (FSA)
FSAs fall under Section 125 of the Internal Revenue Code. They offer a variation of flexibility under which an employee can set aside a portion of their salary, on a pre-tax basis via salary reduction, to pay for certain eligible expenses. There are significant tax savings related to the use of a Flexible Spending Account.
There are two types of FSA accounts administered by PCI, the Health Care Account and the Dependant Care Account.
1. Health Care Account. The health care salary deducted dollars are used for anticipated co-payments, deductibles and other health care expenses not covered by your health plan(s) as well as IRS approved over-the-counter items.
2. Dependent Care Account. These dollars are used to cover daycare expenses for eligible dependents to allow you and your spouse to work.
Health Reimbursement Account (HRA)
Section 105 of the Internal Revenue Code stimulates the regulations for HRAs. HRA accounts are employer sponsored, employer contributions only on behalf of current employee’s and former employees if desired. HRA dollars are to aid employees in paying for premiums (current medical coverage, other health coverage, Long Term Care premiums, and COBRA), and to cover medical expenses as deemed eligible by the IRS.
Employers have many options in setting up and designing their Health Reimbursement Account for their employees. They are afforded flexibility on contribution amounts, rollover provisions and cash-out options. Employers are able to use a HRA to replace other coverage or add on to existing coverage allowing for a more flexible plan design.
Section 223 was added to the Internal Revenue Code January 1, 2004. HSAs are established for and owned by an individual. Each individual owning a HSA must be covered under a High Deductible Health Plan (HDHP), not covered by any other plan that is not a HDHP, or not entitled to benefits under Medicare. HSAs are tax-exempt trusts or custodial accounts used solely for the purpose of paying for qualified medical expenses. Since these accounts are individually owned, monies remaining in the account at the close of the plan year rollover into the next plan year or follow an employee when employment has been terminated. HSAs also allow for a catch up provision for individuals age 55 or older in set increments per year beginning in 2004 through 2009.
Mass Transportation and Parking Program
Section 132 of the Internal Revenue Code allows employees to have their salaries reduced on a pre-tax basis for amounts they pay for mass transportation and/or parking for costs associates with work. Contributions are either employer or by employee salary reduction. Employers save on matching taxes and employees do not include reimbursed amounts in their gross income. The mass transit and parking accounts are kept separate from each other and cannot be commingled. Amounts in your accounts are used on an “as earned basis”. Balances in these account can be rolled from month to month and year to year.
Pre-paid Debit Card
Our pre-paid debit card-based electronic flexible spending account adjudication system, covering healthcare, dependent care, transit and parking, and HRA’s all on one card. Built-in smart card technology debits the appropriate account, checks real-time balances and prevents inappropriate use.
Technology features include:
Online card creation and account management
Key Benefits:
Fewer customer service calls due to online member access
Reduced check and benefit statements production and associated postage
Less manual claims processing
Less electronic claims processing due to auto adjudication of co-pays
Reduced costs for processing reimbursements of ineligible expenses