Section 125 "Cafeteria" Plan Administration

National Plan Administrators provides Third Party Administration services for Employers by assisting them in designing a customized Section 125 Plan. Our services include claim processing, reimbursement, compliance and more.

Good communication is essential, especially during the enrollment process. It is important that employees understand all of the benefits available to them and how the Cafeteria Plan can save them money in one or all of the Plan’s three components:

  1. Eligible Insurance Premiums
  2. Eligible Medical Expenses through a "Flexible Spending Account"
  3. Eligible Dependent Care Expenses through a "Flexible Spending Account"

NPA counsels employers regarding their objectives and then coordinates the enrollment methods that will work best. If help is needed during the enrollment process, NPA can provide Section 125 Plan enrollers to explain the employee benefits offered during the enrollment process. In addition, pre-printed enrollment forms can be produced with each Employee’s deductions. Employers would simply provide NPA with deduction information for each employee so that NPA can pre-print the forms.

For over six years, NPA has offered the use of a Debit Card to flexible spending account participants. This feature allows for instantaneous reimbursement of qualified out-of-pocket medical expenses and for online access to account balances and activity. Implementation of the Debit Card has proven to increase both employee participation and employee contributions into the Plan. Direct Deposit is also available for reimbursment of claims to employees.