You can reduce your overhead costs for employee benefits by offering a Flexible Spending Account (FSA) through MedBen. An FSA is an excellent way to provide your employees additional health benefits while saving you and your employees hundreds, possibly thousands, of dollars in taxes per year. In addition to saving money, employers have found FSAs help to attract and maintain a satisfied workforce.

An FSA Leader. MedBen has the experience to help you set up a personalized plan that provides maximum benefits for all participants. Once the plan is in place, we provide a wide range of ongoing administrative services, from expense reconciliation and check issuance to account tracking and employer reporting. We can provide FSAs on a stand-alone basis or in conjunction with the administration of your medical plan.

Participants Profit. Contributions to the FSA are made through automatic payroll deductions using pre-tax dollars. As a result, money in the account used to pay for qualified medical purchases – from eye exams to dental care, from prescription drugs to over-the-counter medications – escape Social Security, federal and state taxes. For the participant, this means greater take home pay and greater potential savings. An FSA also helps the participant budget expenses over the course of the year and ensure funds are available to cover anticipated expenditures.

Employers Benefit, Too! Every dollar an employee redirects to the plan escapes FICA (Social Security and Medicare) taxes, which means you do not have to pay the matching FICA taxes. You may also save on retirement plan contributions due to the reduced gross salaries of the employee, as well as the premiums for FUTA and SUTA (unemployment taxes).

Added Convenience. MedBen offers the latest FSA features to make administration easy. Our online account services allow your participants to track their account activity 24/7. With our secured website, your employees can monitor account balances throughout the year for optimal usage of account dollars. Plus, a dedicated debit card allows participants to pay for qualified medical expenses at the point of service. The debit amount comes directly out of the FSA, saving time and administrative hassles.

See The Savings! MedBen provides a convenient way to add up the potential savings. Our Tax Savings Calculator allows you and your employees to estimate how much you can save in federal taxes if you set aside a portion of your salary to pay for health expenses under an FSA, child or adult daycare costs under a Dependent Care Assistance Plan (DCAP), or transit and parking fees under a Transportation Plan. Try it for yourself – and expect to be pleasantly surprised!

A Great Start! If you're new to consumer-driven health plans (CDHPs), FSAs serve as an excellent starting point. The tax benefits and potential savings encourage participants to make more cost-conscious decisions regarding their medical spending. In addition, MedBen can integrate your FSA account with a Health Reimbursement Arrangement (HRA) if you offer, or plan to offer, additional CDHPs.

Want to Learn More? MedBen continually hosts employer seminars on CDHPs throughout the Midwest. Over the past few years, these free half-day programs have been delivered to hundreds of employers exploring the cost-saving advantages of CDHPs. Our programs are offered through MedBen University, our professional education division and feature speakers with 15 or more years of benefits experience and specific expertise in their respective topic. For more information on these popular seminars, contact csteen@medben.com.

For more information about FSAs, e-mail our marketing department at marketing@medben.com.