Are these plans affordable? What will it cost me to implement?
Most employers, especially those with more than 50 employees find that the lower payroll costs (7.65% savings) significantly offset the fees charged for administration.
For the Flex Plan, the fees $7 per month per participant, and if monthly elections average $90 per month the savings should be $7 per month. The key is the usage of health clubs, eye care, dental care. Furthermore, when people take advantage of the Child/Dependent Care the average monthly election is usually over $400 per month so the savings could be significant.
For the TFA Plan, the fees are $3 per month per participant, and if monthly elections average $60 per month the savings should be over $5 per month.
As part of our Business Proposal process, BSI Administrative Services will provide a "Pricing Illustration" showing potential cost savings and expected annual costs. You can see general pricing illustrations.
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What type of administrative support can I receive?
BSI Administrative Services (BSI ADMIN) will use independent counselors to assist in the enrollment and employee communications which are kept strictly confidential between the employee and the BSI ADMIN rep, to include:
- Preparing promotional materials (e.g., a kickoff letter and an Employee's Q & A);
- Preparing the employee enrollment package with all forms and instructions;
- Conducting the on-site group sessions, followed by one-on-one counseling sessions to explain available options and answer any personal questions;
- Providing telephone and E-mail access to counselors; and
- Providing confirmation letters for each participant.
The service support detailed in our Servicing Agreement includes:
- Providing all employee forms needed to administer the plan;
- Providing instructions on processing claims reimbursements, changing elections, and special "use it or lose it" reminders;
- Providing cash management services to collect and disburse funds for participants and provide management control reports;
- Reviewing and approving reimbursements to employees in sync with your payroll processing calendar;
- Providing reimbursement checks which can either be distributed along with payroll or mailed to participants home;
- Providing employees with quarterly statements of account activity for the Flex Plan accounts (Unreimbursed Healthcare and Child/Dependent Care);
- Providing employees with annual statements of account activity for the TFA Plan accounts (Mass Transit and Parking Expenses); and
- Providing telephone and E-mail support for daily inquiries about the Plan rules, enrollment, claims processing and participant account information.
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How much work will this mean for my Human Resources and Payroll functions?
Management should be involved in the initial plan design. Then, the HR representative assists BSI Administrative Services with the setup of the enrollment meetings and customizing the enrollment materials. Once the enrollment is completed, then the Payroll staff usually becomes our primary contact as the pre-tax payroll deductions need to be setup. On an ongoing basis, the only additional work involves reconciling the payroll deductions, reviewing and submitting change or termination forms, and distribution of the reimbursements (unless the service requested is to mail reimbursements to participants homes).
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When can I get started? How long will it take to implement?
If needed, the start date can be a short month or short year.The time needed depends on the plans being offered, the number of locations and employees. We do not recommend rushing the process, because when rushed employees feel pressure and will not participate. We usually recommend a 4 week process for the Flex Plan (time to distribute the enrollment materials, conduct orientation meetings, provide counseling, and allow employees to plan ahead). For Premium Only Plans and TFA Plans, the process can be shortened to 2 weeks.
We will advise each employer based on our experience.
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What is needed to start the payroll process?
First the payroll needs to be setup to allow the pre-tax deductions. These amounts will reduce Federal, State, Local, FICA, and Medicare taxes as well as FUTA. Then, when the elections are received, each employees deductions are input. Copies of these elections are sent to BSI Administrative Services who will setup the participant records and send out "Confirmation Letters." As part of the Confirmation Letter process, participants will be able to change their elections.
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Should employees contribute towards group healthcare coverage?
BSI Administrative Services has some models which can analyze your policy for employees’ premium contributions showing the impact to the employer and the employees. If requested, we can assist during plan design in implementing such a policy.
If group healthcare is provided at no cost to employees, then it must be provided unless the employee specifically waives the coverage. In most cases, an employer who does not ask employees to contribute may be paying for duplicate coverage. A small contribution (for example $5 per week) may be sufficient incentive to have an employee waive coverage when alternative coverage is available (spouse’s coverage).
Furthermore, if the premium contributions policy does not differentiate between the type of coverage, then employees who take family coverage may be receiving significantly more benefits than single employees. Employers have been reviewing the excess costs of employees using coverages that are more expensive than the basic single coverage.
Finally, talk with your insurance agent as additional options can be added via payroll deduction (for example, dental care, vision care, long-term care, group term insurance, long-term disability) which can be 100% employee funded.
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What is the BSI Administrative Services "no obligation guarantee?
If for any reason, after the enrollment if the Employer does not wish to implement the Plan, then all fees are waived by BSI Administrative Services. Thus, there is no obligation to try to implement the Plan. As part of the process instead of issuing "confirmation letters" to participants, an announcement canceling the plan will be issued instead.
After the enrollment process is completed, normal termination charges will apply.
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