FSA
Administration

Nationally recognized FSA administrator specializing in technology and service.

What is an FSA?

Employer FSA FAQ

FSA Resources

What is an FSA?

BASIC FSA Administration makes the most of your employer sponsored benefit plan

Employer saves 7.65% on every employee dollar contribution

Fastest reimbursement available

One benefit card for all participant accounts

BASIC FSA makes the most of your employer sponsored benefit plan

Easy enrollment through electronic files (EDI)
Ongoing eligibility & funding management
Online CDA System to view all plan activity for you and your employees
Client reports by single benefit account or aggregated combining all benefit accounts

Our guaranteed compliance includes all legal plan documents, administration manual, and non-discrimination testing
Pricing is based on participation, giving the same advantage to any size group
Participants will love our superior benefit card technology which auto-approves 85% of transactions, all within the guidance of the IRS regulations

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What is an FSA?

A Flexible Spending Account (FSA) is an employer sponsored benefit that allows employees to set aside money on a pre-tax basis for qualified medical, dental, vision, and/or child care expenses.

They are part of IRS Section 125, also known as a cafeteria plan. By electing to contribute to an FSA, employees can save between 15%-40% in tax savings. By offering this benefit, employers save 7.65% in FICA Tax (the combined Social Security and Medicare tax rate) on the value of employee FSA contributions. Learn more about FSA regulations in our Section 125 FSA white paper.

There are Several Different Types of FSAs Accounts.

Medical FSA

Medical FSAs allow participants to use pre-tax dollars to pay for out-of-pocket medical expenses. The IRS regulations govern the eligibility of items, services, and expenses. As a Third Party Administrator, part of BASIC’s administration duty is to help ensure expenses are eligible. Below is a broad list, but a more extensive list can be found in our blog, List of FSA Eligible Expenses.

Insurance deductible
Co-payments and coinsurance
Prescriptions
Dental or vision expenses
Over-the-counter medicine
Menstrual products including tampons, pads, liners, and cups

Dependent Care:

FSAs can also be established to pay for certain expenses to care for dependents while the legal guardian is at work. While this most commonly means child care, for children under the age of 13, it can also be used for a dependent of any age who are physically or mentally incapable of self-care.
Unlike a medical FSA, dependent care is a pay as you go account. Learn more about Dependent Care FSA at our blog.

Limited Purpose FSA:

Limited Purpose FSAs were designed to work in-conjunction with Health Savings Accounts (HSA). Participants who elect a Limited Purpose FSA can pay for dental and vision expenses with pretax funds. This plan helps employees save money while retaining their HSA eligibility. Learn more about BASIC HSA.

Premium Only Plan (POP):

POP Plans allow employees to pay for their employer’s sponsored health plan premiums before taxes. Regulations require a legal plan document to offer this benefit.

Give your employees the ability to leverage pretax savings, request an FSA proposal today!

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FSA Q&A

What laws apply to a Health FSA?

Internal Revenue Code § 105, 106, 125, and 213
ERISA, COBRA, HIPAA, FMLA, USERRA, ACA, and others

What is the maximum FSA carryover amount?

The maximum carryover amount for health FSAs is equal to 20% of the maximum salary reduction contribution under 125(I). (2021 limit is $2,750). For 2021 the carryover amount is $550 ($2,750 x 20%).

What is a grace period?

An employer may choose to offer a grace period of two and one-half months after the end of the plan year to use funds in an FSA. Claims may be submitted for expenses incurred during the plan year and grace period. Grace periods are permissible for all types of FSAs.

What is a run our period?

A run out period allows additional time following the end of the plan year in which people can submit expenses. The expenses must incur during the plan year. An employer can add a run out period to plans that also have a grace or carryover option.

What are the tax savings for employers?

Employers save 7.65% FICA Tax (Social Security and Medicare) on employee FSA contributions.

Do nondiscrimination rules apply?

Yes. Due to its tax advantage status, the IRS requires nondiscrimination testing annually to ensure an FSA plan does not discriminate in favor of highly compensated or key employees.

FSA Accounts just got even more flexible!

Over-the-counter (OTC) medications and menstrual products are now FSA-eligible with the enactment of the CARES Act.

OTC medicine such as pain relief, allergy pills, cough, cold, flu, and stomach remedies
Menstrual products including tampons, pads, liners, sponges, and cups

FSAs fall under IRS regulations but not all FSAs are created equal.
BASIC provides superior responsiveness for clients and participants. Our innovative technology provides the best experience for employees while taking advantage of this money saving benefit.

BASIC Consumer Driven Accounts (CDA)

A cutting edge integrated system allowing employers and participants to manage all their benefit plans with one card, one website, and one mobile app.

Employers can choose to enrich their benefits package with a wide range of healthcare benefit accounts like FSA, Simple HRA, or HSA.
Combine with a variety of available benefit accounts such as Dependent Care, Commuter, Wellness Rewards, Employee Crisis, and Education Reimbursement.

Included with all CDA Accounts

BASIC Benefits App

With a single app, participants can manage all their BASIC benefit accounts.

Participants can submit unpaid invoices to BASIC to pay their provider directly from their benefit account.
Easily submit paid receipt verification to BASIC for quick reimbursement.
Check expense eligibility anytime, anywhere.
Lock or unlock the BASIC card if lost, stolen, or found.
Learn more about the BASIC benefits app.

BASIC Card

All participant benefit accounts and MyCash account are linked to a single card.

Proprietary smart card technology withdraws funds from the appropriate account(s) based on plan design and expense eligibility.
The BASIC Card can be used anywhere Mastercard is accepted.
Learn more about the BASIC Card

MyCash

MyCash is an unrestricted post-tax reimbursement account linked to participants’ BASIC Cards.

Reimbursements are deposited directly into the participants’ MyCash accounts.
MyCash enables the fastest reimbursement time possible. Faster than check or direct deposit!
Participants can use their BASIC Card to access MyCash funds or they can be transferred to another bank account.
Learn more about the MyCash account.

Picture to Pay Provider

In three quick steps, participants can have BASIC pay healthcare providers directly on their behalf with our “Picture to Pay” feature. No paper, no postage, and no hassle for the participant. All with no additional fees for employers!

Participants take a picture of the provider’s bill
Submit the photo to the BASIC Benefits app
BASIC pays the provider from the appropriate benefit account

We’re happy to help

Named Account Manager for groups with over 50 participants or clients of one of our preferred referral partners
Toll-free support with below industry average hold times for all clients
Readily available customer service representatives for participant questions on eligible expenses
Our CDA system empowers clients to perform routine functions like enrolling or terminating employees from a benefit plan at any time.
Support Requests can be made directly in our CDA system, enabling clients to quickly request changes to their benefit plan, plus receive a tracking number and status updates. No need to track multiple email addresses or wonder about the status of your request.