Consumer Driven Healthcare

—Flex Account

This unique Benefit Plan provides employees benefit and spending choices from the employer funded Health and Welfare allocation. Unlike other products, this Benefit Plan has been specifically developed to be compliant with Federal Contracting and Health and Welfare Benefit Plan guidelines.

• Technology
• Employer Flexibility
• Simplicity
• Flex Account Debit Card
• Regulatory Compliance
• Benefits of Flex Account Plan
• Cost Effectiveness
• Technical Support

Technology:
     Benefits Consulting Group has teamed up with the leading providers of Debit Card Technology. By using a MasterCard® Debit Card, employees make point of service payment to the service provider from their Health and Welfare allocations. This method of direct payment for qualified expenses can make out-of-pocket payment, filing claim forms and reimbursement a thing of the past.
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Employer Flexibility:
     The employee decides where, when and how to spend the allotted fringe benefit dollars. Qualified expenses can range from medical to dental, vision to dependent day care. Many choices available through the Flex Account Plan are not typically available by traditional health plans. Employee satisfaction is increased because they get to choose the benefits that are right for them.
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Simplicity:
     For every hour the employee works, an Hourly Health & Welfare contribution is allocated to the employee’s personal account. Employees can then pay for qualified expenses at the time of service using the MasterCard® Debit Card up to the balance in their personal account. This takes just minutes to explain to your employees and is easy for them to understand.
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Flex Account Debit Card:
How smart is the card?
     The debit card enables employees to pay for qualified expenses from a qualified provider if MasterCard® is accepted. Once an eligible provider/merchant location swipes the card, the smart system screens the transaction to access employee account funding. If sufficient funding exists, the transaction is approved and the amount is deducted from the employee’s account. No claim forms, no out of pocket expenses, just hassle-free spending.
     In the event a provider or merchant does not accept MasterCard® or if there isn’t sufficient funding in the employee account, the employee will make payment to the provider and then request reimbursement from the Flex Account Plan. A “paper claims” reimbursement option is available and employees may mail or fax claims are reimbursed on a timely basis.
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Regulatory Compliance:
     The Flex Account Plan is a qualified defined contribution benefit that eliminates concern for Department of Labor (DOL) compliance. Government contracts specifically outline the Health & Welfare fringe benefit obligations. Employers must pay the fringe benefit rate for every hour worked or paid, as per individual contract. Because the employees are receiving credit for the actual fringe benefit dollars, the Flex Account Plan is the simplest method to provide and document compliance.
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Benefits of Flex Account Plan
Employer Benefits
1. Reduced Payroll Taxes
2. Contract Compliance
     The Flex Account reduces payroll taxes. By offering employees benefit options rather than a cash payout, employers are not required to pay payroll taxes on the benefits provided
     The Flex Account Plan may provide Service Contract Act and Davis Bacon Act compliance for other Major Medical or Limited Benefits Programs. Because the balance between the premium payment and the required fringe allocation is credited to each employee’s account, virtually any Major Medical or Limited Benefits Plan can be compliant and the employee retains control over the excess fringe allocation.

Employee Benefits
1. Spending Control
2. Tax Savings
      The Flex Account debit card allows employees to choose which qualified service is most suitable and how their allocations will be spent. The debit card gives employees instant access to their benefit allocation and may eliminate out of pocket expenses.
     If the employee received the Fringe Allocation as cash, the employee must also pay payroll taxes. By using the Flex Account Plan, the employee can use the money to pay for the out-of-pocket expenses that they would normally incur without first paying taxes on those dollars.

Cost Effectiveness
     Administrative costs are borne by the participants. Both employer and employee enjoy the savings of paying benefits through the plan.
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Technical Support
     Employees have instant access to accounts day or night. Employers can also access employer reports with real-time data. In addition, a toll-free number is available to employees for assistance with account balances and Debit Card usage.
     For many years, Government Contractors have realized that there is no single benefit package appropriate for an increasingly diverse workforce. Flexibility is the only way to provide more options and to make benefits more effective.
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The Flex Account Plan is the solution!