Flex 125 Plan Administration
What is a Flex Plan?
Flexible Spending Arrangements (FSAs), also known as Flexible Benefit Accounts (FBAs), Section 125 Plans, or simply Flex Plans, are one of the most dramatic developments in employee benefit plan design in recent years.
With a Flex Plan, an employer arranges for the establishment of individual employee accounts of pre-tax dollars. Employees decide on the amount of money they wish to contribute to the account, and that amount is taken out of their pay on a pre-tax basis. Employees utilize this account throughout the year, as needed, to cover a variety of eligible expenses not covered by benefit plans, such as medical expenses, group life and health premiums, and dependent care assistance.
Plan Administration Services
Rocky Mountain Health Plans (RMHP) offers Flex Plan administration services through its partnership with CNIC Health Solutions (CNIC), Colorado’s largest independent third-party administrator. CNIC offers all of the following administration services:
- Flex Plan claim processing and check issuance
- Assistance with the generation of information required each year by the IRS and Department of Labor
- Maintenance of spending account records for reports to participating employees