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Flexible Spending Account – (FSA)

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A Flexible Spending Account is a method for employees to put aside pre-tax dollars to pay for their out-of-pocket health and/or dependent care costs. Flexible benefit plans are structured in a variety of ways, ranging from simple “premium conversion” programs, to full flex (or “cafeteria”) plans, which offer employees a “menu” of benefits from which to choose. In most flex plans, an eligible employee can choose to receive all compensation in cash (instead of benefits) to direct a portion of his/her salary to purchase additional benefits offered or to a Flexible Spending Account. The employee‘s contributions are payroll deducted and deposited to an account maintained by the employer. When the employee incurs an expense for one of the qualifying benefits, the employer reimburses the employee from the money deposited in his/her individual account. These reimbursements are not subject to federal income tax, Social Security tax and most state and local taxes; therefore providing employees with tax-free benefits while providing the employer with a means to reduce employment expenses.

Dependent Care Assistance Program – (DCAP)

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A DCAP is a Dependent Care Assistance Program that is also an FSA. An employee can use a Dependent Care Assistance Program (DCAP) to be reimbursed for employment-related expenses that allow the employee and his or her spouse to be “gainfully employed”. Employment-related expenses apply only to certain individuals. Typical DCAP expenses are those incurred to have a baby-sitter or day care provider take care of an employee’s child(ren) under the age of 13 while both parents are working. The DCAP plan may also cover custodial care for disabled spouses or parents that are incapable of caring for themselves so the employee can be gainfully employed.

Health Reimbursement Arrangement – (HRA)

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A Health Reimbursement Arrangement (HRA) is an account authorized under Section 105(h) of the Internal Revenue Code and further defined in 2002 by Revenue Ruling 2002-41 and notice 2002-45. An HRA is an employer-funded arrangement designed to reimburse employees and, in most cases, their spouses and dependents for certain medical expenses as outlined by the employer. Amounts in the employee’s HRA account that are not used to reimburse the employee during the coverage period may be carried over into subsequent coverage periods, provided the employer allows this provision.

Why should you consider an HRA? 

Employers use HRAs as a means to offset the extra costs they ask employees to incur when they switch to a cost-savings group medical plan. The HRA fills the financial gap employees would have had to otherwise fill. The result? Employees don’t see the change you make in their health benefits plan as a financial loss. Better still, once employees start using the HRA, they quickly learn the cause and effect of their health care choices–the wiser the choices, the more money stays in their account. They learn the true cost of health care, creating a long-term contribution strategy.

Since the coverage is considered fully insured, there is no claim liability other than the agreed upon HRA amount in the beginning of the plan year. Your company could see the maximum savings of 100% if HRA funds are not fully utilized by the covered employee. By processing the deductible amounts, using the IRS Section 105 (HRA), combined with the normal health plan carrier’s discount contract will normally give the employee a 20% to 40% discount off of the retail cost of medical services they would not normally experience. If the employee utilization is within the national average, then the employer can expect to save 20% – 40% or more off of their current premium costs.

Health Savings Accounts – (HSA)

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Health Savings Accounts (HSAs) are tax-advantaged IRA-type custodial accounts that can be contributed to by, or on behalf of, “eligible individuals” who are covered by certain high-deductible health plans (HDHPs) to pay for certain medical expenses of the eligible individuals and their spouses and tax dependents. An HSA-eligible individual can make contributions (up to statutory limits) to an HSA and get a tax deduction, which reduces an individual’s adjusted gross income before itemized deductions are considered. Investment earnings on HSA funds generally are tax-free. HSA funds withdrawn for qualified medical expenses are completely tax-free.
Employers who contribute to their employees’ HSAs or offer HSAs under a Cafeteria Plan receive a federal tax deduction for those contributions.

Medcom’s HSA solution is offered in conjunction with a partnership with Avidia Bank, based out of Boston, Massachusetts. Our offering provides a low investment balance requirement of $1,000 and 13 investment funds to invest HSA dollars. We offer a one-debit card solution that will accommodate multiple benefits on the same debit card, such as a Limited FSA and/or Dependent Care Assistance Plan. We also offer participants 24/7 online access, including BillPay options and the ability to make additional, after-tax, contributions into the HSA.

COBRA

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Medcom offers a single, fully-integrated and easy-to-use platform for COBRA administration.  Medcom offers a turnkey solution for the administration of the COBRA benefits.
All federally required notices are provided, including initial COBRA, COBRA election, open enrollment, qualifying event, short pay, conversion, extension, termination and other notices


Our robust online web portal is available to serve employers and participants 24 hours a day, 7 days a week Medcom provides standard daily online reporting of generated letters, member status, terminations, initial notices and paid through date Detailed custom reports covering any desired time period can be delivered to the web on your specified time frame

Retiree Billing

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Medcom offers a single, fully-integrated and easy-to-use platform for RETIREE BILLING and direct billing administration.  Medcom offers a turnkey solution for the administration of these benefits.
Upon notification of an employee’s retirement, Medcom initiates communication with the retiree and carriers to streamline the enrollment process. Our robust online web portal is available to serve employers and participants 24 hours a day, 7 days a week.

Medcom provides standard daily online reporting of generated letters, member status, terminations, initial notices and paid through date. Detailed custom reports covering any desired time period can be delivered to the web on your specified time frame

Commuter Benefits

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Qualified Transportation Plans allow employers to offer a tax break to employees with qualified transportation expenses related to their employment. This benefit reimburses employees based on the amount deducted from their paycheck and is capped at a monthly amount. The monthly amount is determined by the IRS & typically changes year to year.

The following benefits may be offered on a pre-tax basis through a transportation plan:


Transit Passes

These include any pass, token, fare card, voucher or similar item entitling a person to transportation (or transportation at a reduced price) if it is encompasses mass transit facilities or is provided in a highway vehicle eligible for use in van pooling.


Van pooling

This means transportation to and from an employee‘s residence, but only if the transportation is in a “commuter highway vehicle” that seats at least six adults plus the driver. At least 80% of the vehicle‘s use should be for transporting employees between their homes and their jobs. Employees must use at least half of the seating capacity for such trips.


Qualified Parking

The Qualified Parking benefit enables the employee to pay for parking with pre-tax dollars if the parking facility is at or near the employer’s business premises. It also includes parking at or near a location from which the employee commutes to work by mass transit, van pooling, in a commuter highway vehicle, or by car pool (parking at or near the employee’s home does not qualify).


Bicycle Commuting Benefit

The Bicycle Commuting benefit is another type of commuter benefit that allows employees who ride bicycles to receive reimbursement for expenses as defined by Code § 132(f)(5)(F)(i) that are funded entirely by the employer. These reimbursements must be:

  • For reasonable expenses;
  • Incurred for the purchase, improvement, repair or storage of a bicycle;
  • That is regularly used for travel between the employee’s residence and place of employment;
  • If the reimbursement is paid during the calendar year in which the expenses are incurred or during the first three months after that calendar year.



Unlike the other Commuter Benefits offered under Code § 132, the Bicycle Commuting benefit’s maximums are based on an annual, calendar-year basis, not to exceed a certain amount per calendar year. This amount is determined by the IRS and may change from year to year. However, the actual limit is determined by multiplying $20 times the number of “qualified bicycle commuting months” the employee uses during each calendar year. A month is considered a “qualified bicycle commuting month” if:

  • During that month the employee used the bicycle for a substantial portion of the travel between the employee’s residence and place of employment; and
  • For that month the employee did not receive any other qualified transportation fringe benefit (i.e. parking, vanpooling, or transit).



Please contact Medcom at sales@medcombenefits.com for more information about our Transit and Parking administrative services.

Plan Document

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The Employee Retirement Income Security Act (ERISA) specifies that all plans, regardless of the number of participants, must be established and maintained according to a written document containing specific provisions. These provisions include:

  • Naming one or more plan fiduciaries who have authority to control and manage the administration of the plan
  • Describing a procedure for establishing and carrying out a funding policy
  • Describing procedures for distributing the plan’s operational and administrative responsibilities
  • Describing the procedure for making plan amendments and identifying who can make them
  • Describing the basis on which payments are made to and from the plan.



Medcom provides a turnkey solution for employers by providing comprehensive, professionally prepared ERISA compliant plan documents for Section 125 Premium Only Plans, Flexible Spending Accounts, and Health Reimbursement Arrangements. Medcom also prepares plan documents for Dependent Care Assistance Plans, Parking and Transit (Commuter) Plans, and Educational Assistance Programs.

Form 5500

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Form 5500 provides statistical information about the plan and plan sponsors, reports financial information about the plan, and demonstrates compliance. Employers with at least 100 plan participants are required to file this form with the IRS and DOL annually. ERISA and HIPAA regulations also make it clear that if a plan is not properly documented the government will determine the rules for the plan. In an effort to reduce the administrative burden for employers and eliminate the potential for sizable monetary penalties, Medcom simplifies the complexity of Form 5500 filing by utilizing its expertise and decades of experience in custom-tailored reporting to best fit employer needs.

Please contact us at sales@medcombenefits.com for more information about our Plan Document preparation services.

Nondiscrimination Testing

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In order to maintain full tax deductible status for both the Plan and its participants, ERISA plans must satisfy nondiscrimination requirements as established in the Internal Revenue Code.


Medcom provides comprehensive annual nondiscrimination testing for Section 125 Cafeteria Plans (inclusive of POP and health FSA), Section 129 Dependent Care Assistance Plans, and Section 105(h) Plans that are either self-funded or fully insured. Medcom generally recommends that a preliminary annual test take place mid-year to allow for any adjustments, if necessary, and to avoid any tax sensitive issues that may result from end-of-year testing. Medcom provides the employer with a detailed report card that fully summarizes the results for each required test and offers workable solutions for any areas in which the plan is not compliant.

Please contact us at sales@medcombenefits.com for more information about our Plan Document preparation services.

WRAP Documents

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Following the passage of ERISA, many plan sponsors reviewed their insurance contracts and other plan documentation and found them to be insufficient for satisfying all of the ERISA guidelines. In order to correct this, many adopted what is commonly referred to as a “wrap plan document.” These documents serve the following purposes:

  • Satisfy ERISA’s plan document requirements by supplying information often missing from insurance contracts
  • Simplify plan reporting requirements under ERISA’s reporting and disclosure rules



The wrap plan document simply “wraps around” and incorporates, by reference, the contracts or booklets provided by insurance companies for the benefits they insure. In addition, wrap documents contain language to describe the programs (such as cafeteria plans) that are not described in the insurance company materials. By wrapping around existing contracts, a single employee welfare benefit plan is created. The wrap plan document is an effective method for managing ERISA plans regardless of the number of insurance contracts or other written agreements currently in force. Whether the plans are fully insured, self-insured, funded through a trust, or paid from the general assets of the employer is of little consequence. The critical factor is that a written document describing all the active benefit plans actually exists. Medcom’s team of regulatory compliance specialists works closely with each employer to prepare a wrap plan document that meets the employer’s exact needs.


Please contact us at sales@medcombenefits.com for more information about our Wrap Plan Document preparation services.

Comprehensive ERISA Plan Review

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Federal regulations have taken on a life of their own. Busy employers are constantly challenged with incorporating, managing, reporting and updating in accordance with regulations such as ERISA, COBRA, PHSA, HIPAA and PPACA. Medcom provides two levels of compliance review to enable employers to evaluate their health and welfare benefit programs for compliance. First, the Fringe Benefit Review focuses on the continuum of tax advantaged programs such as Section 125 Cafeteria Plans, Flexible Spending Accounts, and Health Reimbursement Arrangements. Medcom provides the employer with a comprehensive report, along with recommendations for resolving any areas which are not fully compliant with federal guidelines.The Health & Welfare Compliance Review consists of a broader analysis of employer sponsored plans. In addition to analyzing all of the programs included in the Fringe Benefit Review, Medcom’s comprehensive review examines all medical, dental, vision and life plans, along with an analysis of HIPAA portability, privacy and security. For public entities, we incorporate all PHSA regulations and prevailing state insurance laws into the evaluation.


Medcom’s regulatory compliance specialists examine the plan documentation of the benefit
programs currently in place and recommend all appropriate revisions to ensure full compliance for the employer.


Please contact us at sales@medcombenefits.com for more information about our Plan Document preparation services.

Health Insurance Portability & Accountability Act

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The passage of the Health Insurance Portability and Accountability Act in 1996 brought new requirements regarding the confidential handling of Protected Health Information (PHI). The HIPAA Policy Documentation package provides a comprehensive portfolio of documents custom-designed to enable employers to comply with HIPAA’s privacy rules:

  • Privacy Checklist
  • Notice of Privacy Practices
  • Privacy Complaint Log
  • Record Request Log
  • Authorization Form
  • Training Log and Checklist
  • Privacy Policy and Procedures
  • Privacy Complaint Form
  • Record Request Form
  • PHI Disclosure Log
  • Privacy Official Job Description
  • Business Associate Agreement Template




Please contact us at sales@medcombenefits.com for more information about our Plan Document preparation services.

Actuarial/Healthcare Reform Services

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Medcom’s dedicated Regulatory Compliance Division assists employers of all sizes in complying with federal laws such as the ACA, ERISA, PHSA, COBRA, and HIPAA, as well as the Internal Revenue Code and other prevailing guidelines. We specialize in preparing compliant Wrap Plan Documentation for ERISA health and welfare benefits, Section 125 Cafeteria Plans, HIPAA Privacy Policies and Health Reimbursement Arrangements. Additionally, we provide in-depth consulting services and practical analysis in the areas of Form 5500 filing, nondiscrimination testing, wellness plans, employee handbook review, and comprehensive audits of benefit plan documentation. Our Healthcare Reform Consulting Services offer strategic guidance for complying with Healthcare Reform rules, determination of Applicable Large Employer and Full Time Employee status, actuarially certified Pay or Play Modeling, and Minimum Actuarial Value analysis for health plans. Actuarial Services include COBRA Rate Certification for HRAs and self-funded plans, IBNR Reserve Calculations, Self-Funding Feasibility Studies, and Renewal Analysis for fully insured plans.

Correctional Services

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Medcom Correctional Services provides back office administration for government healthcare contracts. We offer a suite of applications and services to perform all of the administrative, clinical, and financial operations required by a correctional institution’s health services and administrative staff.


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