Brokers, want a new favorite partner?

We suggest selecting us as your new administrator will prior to your benefit plan renewal – we’re talking 90 days or more before your plan renewal date. You don’t need to know what your benefit plans are to know who you want to run them for you. Making this choice early, allows you to get to know you partner and prepare to develop data connections, open enrollment efforts and more before renewal work begins. We DO NOT recommend having Igoe take over administration for any existing plan until all grace period and run out activity has ended for that plan year. This makes it easier for both your finance department and your plan participants.

If you have any COBRA members that are enrolled or eligible to enroll, we suggest moving COBRA outside of the renewal period (2-months prior to or following and open enrollment event. Why? This will allow Igoe to either fully service your open enrollment or pick up activity after open enrollment is closed to avoid confusion for COBRA members. When Igoe may have to service COBRA activity for multiple plan years due to COBRA’s notification and election timelines, this may require that rate and plan information for multiple plan years are provided at implementation.

It only takes Igoe a few days to set up our systems. But that is not all it takes to properly implement services. Implementation includes a variety of education touch points, discussions about data integration and transition efforts, training and more. Igoe has a dedicated Client Intergrations team that specializes in integrating each client’s business practices and needs with Igoe administrative capabilities. Ideally, we’d love at least 60 calendar days to do this (90 if you want a platinum experience). We never recommend implementing inside of a 30-calendar window. This never returns good results for anyone involved.

We value building long-lasting relationships. To do that, we ask initial questions to make sure Igoe will be a good fit for you. We are also highly consultative. The more we know about why you are looking to change partnerships, the more we can focus on solutioning to meet your specific goals.

Yes, yes and yes!!!! We love data integrations!!!!

An 834 file is a method for electronically submitting carrier eligibility information to insurance carriers through a scheduled file feed. This automated process eliminates the need for Igoe to manually trigger COBRA eligibility carrier notifications. Please note that not all carriers or current plans may support eligibility submissions via the 834-file format even though they are required to under HIPAA. We recommend checking with your carriers to determine if this option is available and compatible with their system.

Visit our resource center for general resources. Custom resources, such as Summary Plan Descriptions, and other tools can be located on iView.

When employers add benefits like a Flexible Spending Account (FSA), Health Savings Account (HSA), Health Reimbursement Arrangement (HRA), or a Commuter Plan, they can realize substantial cost savings through tax advantages, lower healthcare expenses, and improved employee satisfaction and retention. Here’s a breakdown of how each plan can lead to savings:

1. Flexible Spending Account (FSA)

An FSA allows employees to set aside pre-tax dollars for medical, dependent care, and other qualified expenses.

Employer Cost Savings:

• Payroll Tax Savings: Employee contributions to an FSA are deducted before taxes, meaning employers avoid paying FICA (Social Security and Medicare) taxes on those contributions. Employers save about 7.65% of the amount employees contribute.
  • Example: If an employee contributes $2,000 to their FSA, the employer saves around $153 in payroll taxes.
• Reduced Healthcare Claims: With FSAs, employees are better equipped to manage healthcare costs, which can lead to healthier outcomes and reduced healthcare claims for the employer.
• Encourages Preventive Care: Employees are more likely to utilize preventative care, reducing the risk of more expensive health issues later on.

2. Health Savings Account (HSA)

An HSA is paired with a high-deductible health plan (HDHP) and allows employees to save pre-tax money for medical expenses.

Employer Cost Savings:

• Lower Health Insurance Premiums: HDHPs are typically cheaper than traditional plans, which leads to direct savings for employers on premiums.
  • Employer Savings Estimate: Employers can save hundreds to thousands of dollars per employee per year on premiums.
• Payroll Tax Savings: Employers save on 7.65% payroll taxes for both their contributions and employee contributions to the HSA.
  • Example: If the employer contributes $500 per employee annually, they save about $38 in payroll taxes per employee.
• Lower Healthcare Costs: Because employees are responsible for more of their healthcare costs under a high-deductible plan, they tend to be more cautious in seeking care, potentially reducing overall healthcare expenses for the company.

3. Health Reimbursement Arrangement (HRA)

An HRA is an employer-funded account that reimburses employees for out-of-pocket medical expenses and, in some cases, insurance premiums.

Employer Cost Savings:

• Tax Deductibility: HRA contributions are tax-deductible for employers, and no payroll taxes are owed on contributions, reducing the employer’s tax liability.
  • Employer Savings Estimate: Employers save around 7.65% of the contributions they make to their employees’ HRAs.
• Lower Health Insurance Premiums: HRAs are often paired with HDHPs, which have lower premiums. This can help employers reduce their overall healthcare insurance costs.
  • Employer Savings Estimate: Employers may save hundreds or thousands of dollars per employee annually, depending on their contributions and the plan design.
• Improved Employee Retention: Offering HRAs can improve employee satisfaction and retention, which helps reduce costs related to recruitment and turnover.

4. Commuter Plan

A Commuter Plan allows employees to pay for commuting expenses (like public transportation, parking, and biking) with pre-tax dollars, lowering both their taxable income and the employer’s payroll tax liability.

Employer Cost Savings:

• Payroll Tax Savings: Just like with FSAs and HSAs, commuter benefits are funded with pre-tax dollars, reducing the employer’s liability for FICA taxes. Employers save about 7.65% of the employee contributions.
  • Example: If an employee contributes $100 per month to a commuter plan, the employer saves about $7.65 per month, or $92 per year.
• Reduced Absenteeism: Commuter benefits help employees manage transportation costs, making it easier for them to get to work. This leads to fewer absences and improved productivity.
• Increased Employee Satisfaction: Commuter plans are a valuable perk that can boost employee satisfaction and retention, saving on recruitment and training costs.

Summary of Employer Cost Savings by Plan

Conclusion

By offering FSAs, HSAs, HRAs, and Commuter Plans, employers can achieve significant cost savings through payroll tax reductions, lower health insurance premiums, and enhanced employee satisfaction. These benefits not only reduce overall healthcare costs but also improve employee well-being, leading to increased retention and productivity. Whether it’s through tax savings, reduced absenteeism, or empowered employees making smarter healthcare and commuting decisions, these benefits provide a win-win for both employers and employees.

In general, employees save roughly 30% on each dollar they set aside in an FSA, DCA, or commuter program. These savings increase with an HSA due to the ability to earn interest on these funds, invest them, and use them without penalty upon retirement.