Whether your company has two employees or more than 20,000, IIS Benefit Administrators is likely to have a strategy to cut costs and keep employee benefit levels high. At IIS, small companies can enjoy the same savings and buying power normally reserved by insurance carriers for their biggest clients. All reporting is transparent and detailed. IIS Clients gain access to the claims history they need to tailor their health plans for maximum savings.
Employees appreciate the convenience of showing just one medical card to start their claims process whenever they access medical services. That one card is all that is necessary for IIS to accurately reimburse providers and obtain electronic explanation of benefits (EOB) data from insurance carriers.
IIS administers a full range of benefits programs including COBRA, flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement accounts (HRAs) and IRS Code Section 105 accounts.
Lower your fixed costs. Maintain your current level of benefits. Enjoy better reporting. That’s the IIS difference!
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time. Circumstances include voluntary or involuntary job loss, reduction in hours worked, transition between jobs, death, divorce and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost of the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in their prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice to employees regarding their status.
A flexible spending arrangement (FSA), commonly known as a flexible spending account, is one of a number of tax-advantaged financial accounts that can be set up through a cafeteria plan. An FSA allows an employee to set aside a portion of his or her earnings to pay for qualified expenses as established in the cafeteria plan document. The most common use of FSAs is payment of medical expenses or dependent care. Money deducted from an employee’s pay and placed into an FSA is not subject to payroll taxes, resulting in substantial payroll tax savings.
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the U.S. who are enrolled in a high deductible health plan (HDHP). Funds contributed to the account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), funds roll over and accumulate year-to-year if not spent. HSAs are owned by the individual, which differentiates them from a company-owned health reimbursement arrangement (HRA). HRAS are an alternate tax deductible source of funds paired with HDHPs. HSA funds may currently be used to pay for qualified medical expenses at any time without federal tax liability or penalty. However, beginning in early 2011, you will no longer be able to pay for OTC medications with HSA dollars (Sec. 9003 of H.R. 3590). Withdrawals for non-medical expenses are treated very similarly to those in an IRA. They may provide tax advantages if taken after retirement age and incur penalties if taken earlier.
Health reimbursement accounts or health reimbursement arrangements (HRAs) are IRS-sanctioned programs that allow an employer to reimburse medical expenses originally paid by participating employees. Doing so yields tax advantages to offset health care costs.
One Global Financial Services (OGFS)
This program offers a financial solution to stabilize an employer’s benefit costs for three-year increments. Doing so often results in measured savings for the employer. The program is a financial and risk management platform that incorporates sophisticated and accurate cost trend modeling technology, cash flow and earnings analysis, actuarial back testing and an advanced funding component.
The One Global Financial Services program is designed for:
• Fully-insured benefits plans
• Self-funded employers (public and private)
• Prescription benefit mangers
• Independent physician associations
• Third party administrators
Benefits of the One Global Financial Services program:
• Establishment of a fixed healthcare budget for three years, not 30 days
• Measured savings in both the variable and fixed cost environments
• Establishment of a level fixed monthly remittance/premium equivalent that best fits your cash flow needs
• Use of the capital market to pre-fund healthcare and workers’ compensation expenditures in three-year increments
• Elimination of the risk of using letters or lines of credit that can put assets at risk
• Investment income is earned inside of a trust
Specific OGFS products include:
• Alternative expense reduction programs
• Advanced healthcare funding
• Equipment maintenance reduction contracts
• Shipping and freight negotiations
IIS Benefit Administrators uses proprietary software to manage the cash aspects of benefits administration. The program relies on proven actuarial differences concerning policy holder claim patterns and premium differentials resulting from high and low deductible health insurance policies. The strategy works with most health insurance providers in the U.S.
With IIS Benefit Administrators, employers can realize savings on health insurance premium costs of approximately 50% by purchasing high deductible policies while their employees receive the benefits of traditional low-deductible plans. Explanation of benefits statements (EOBs) submitted to IIS Benefit Administrators are processed as usual by the insurance company and IIS Benefit Administrators. EOB reports are sent to the employer for reimbursement.
• Assurant Health
• BlueCross/BlueShield of Texas
• Medical Mutual of Ohio
• St. Mary's
In exchange for this easy benefits administration step, employers can realize savings of approximately 30% on their group health insurance premiums after accounting for plan management fees.
Employees are provided with one card to handle all of their medical benefits, so the IIS program is seamless to them. A dedicated web site is created for each company. The web site is a resource for data, history and claims process information. Employees can track their own claims transactions on this same web site with password protected, HIPPA-approved software.