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It is good business sense that, to attract the best employees, you need to offer the best benefits. That doesn't mean that your benefits plan needs to operate on a Fortune 500 Company budget. The tax code allows for several different types of accounts to be set up that pay for certain costs:

• Flexible Spending Accounts (FSA) allow employees to place portions of their gross salaries into separate accounts. These accounts can be spent on items and amounts not covered by already-existent insurance plans.

• Employer-Funded Health Reimbursement Accounts (HRA) are funded by the employer, and allows employees to submit claims for certain allowable expenses that qualify as non-taxable. He or she is reimbursed from the HRA account.

• Health Savings Accounts (HSA) allow employees, employers, and outside parties to contribute to a fund that can pay for certain expenses. This money can be carried over year to year, and willed. This type of account is available only in conjunction with high-deductible insurance coverage.

Categories of coverage, depending on plan type, can include:

• Medical reimbursement
• Legal expenses
• Group life insurance
• Dependent care expenditures

Why Choose a FLEX Plan?

• Employees save money because reimbursements are not, and will never be, taxed.
• Employers save money because the amount set aside is not subject to FICA and unemployment tax contributions.

These plans are designed to offer employees and employers maximum flexibility and spending power. However, to be successful, these plans must be thoughtfully designed, and carefully managed.

Here's where we come in.

HEG offers extensive experience in effective management and control of FLEX plans, we well as the communication necessary to make a transition to FLEX plans painless for employers and employees. We will work directly with your payroll department or service, will provide detailed explanation of benefits, and will process claims accurately and efficiently. We guarantee that you will talk to a real human being who will work with you in a personable, friendly, and efficient way.

Our services include:

• Plan design and implementation
• Employee communications
• Claims processing
• Funds accounting
• Employee notices
• Management Reports

To aid in a transition to FLEX, we suggest that FLEX plans overlay existing benefit plans. This way, other plans can be modified to save costs. For example, a dental plan may be changed to eliminate orthodontic coverage; those who need that service can pay for it through their FLEX plan.