FSA
Administration

Nationally recognized FSA administrator specializing in technology and service.

FSA Administration features that benefit you:

Employer saves 7.65% on every employee dollar contribution

Fastest reimbursement available

One benefit card for all participant accounts

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.

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

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

BASIC Consumer Driven Accounts (CDA)

A cutting edge integrated system allowing employers and participants to manage all their benefit plans and benefit continuation (COBRA) accounts 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.
Single sign-on solution to access benefit plans and benefit continuation accounts – no more switching between multiple systems!

Included with all CDA Accounts:

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

BASIC Benefits App

With a single app, participants can manage all their BASIC benefit accounts and benefit continuation (COBRA) plans.

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.

MyCash

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

Reimbursements are deposited directly into the participants’ MyCash accounts and are faster than check or direct deposit!
Participants can pay COBRA premiums with their MyCash balance, credit and debit cards, setting up auto-pay, and more!
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

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

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.

What is an FSA?

Flexible Spending Accounts (FSA) are part of the IRS Section 125, also known as a cafeteria plan. FSAs are an employer sponsored benefit that allows employees to set aside money on a pretax basis for qualified medical and/or child care expenses.

The IRS regulates what services or purchases are eligible under Section 125. Each benefit under Section 125 has maximum contribution limits and guidelines for when elections can change. Current IRS limits can be found at our Regulations Page.

Medical FSA:

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

* Eligible under the CARES Act of 2020

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.

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.

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.

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

About FSA

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) allows employees to allocate a portion of their taxable earnings to cover eligible medical, dental, vision, and dependent care expenses. By doing so, employees contributions to an FSA are made on a pre-tax basis, resulting in tax savings for both them and the employer. Offering an FSA can enhance a company’s benefits package, aiding in employee attraction and retention while potentially reducing overall healthcare costs. It’s important to communicate clearly about FSA benefits, eligible expenses, and any plan rules to ensure employees fully understand and utilize this valuable benefit.

What is the difference between HSA and FSA?

The main difference between a Flexible Spending Account (FSA) and a Health Savings Account (HSA) lies in who owns the account and the rollover rules. FSAs are employer-owned accounts where employees contribute pre-tax dollars to cover eligible healthcare expenses but typically must use the funds within the plan year or forfeit them (with some exceptions). HSAs, on the other hand, are individually owned accounts available to those enrolled in high-deductible health plans (HDHPs). Contributions to HSAs are also made with pre-tax dollars, but the funds roll over year after year and belong to the individual, even if they change jobs. Additionally, HSAs offer the potential for investment growth.

What is an example of an eligible expense for a Dependent Care FSA (DCFSA)?

Participants can use their DCFSA to pay for a variety of care services including preschool, summer day camp, before/after school programs and child or adult day care. The only caveat is that the care must be provided as they (and their spouse if applicable) are working, looking for work, or attending school full time.

Are there different types of FSAs?

There are several types of FSAs available to employers including Medical FSA, Dependent Care FSA, and Limited Purpose FSA. Each has their own rules regarding who is eligible to participate and which expenses qualify for reimbursement. BASIC also offers a Premium Only Plan (POP), which allows employees to pay for their employer-sponsored health plan premiums with pre-tax dollars.