Flexible Spending Account COBRA and AB528 Administration Services

The Vendor is required to provide administrators of FSA, COBRA and AB528 services for large (15,000 or more employees) public sector employers.
- Healthcare Flexible Spending Account (HCFSA). The HCFSA covers common medical expenses for members and their dependents, such as, co-payments, prescription drugs and certain over-the counter products. 
- HCFSA is designed to allow members to pay for medical expenses not covered by health insurance on a pre-tax basis and in compliance with the requirements of IRS Code Sections 105 and 106. Those who elect this benefit are issued a debit card by P&A to spend the funds on eligible expenses.
- The new carryover amount for 2026 funds will be a minimum of $10 and a maximum of $660 into the 2027 plan year.
- Dependent Care Spending Account (DCFSA). The Dependent Care FSA (DCFSA) covers childcare and care for elderly family members who are incapable of self-care.
- DCFSA is designed to allow members to pay for childcare or adult dependent care expenses on a pre-tax basis and in compliance with the requirements of IRS Code Section 129.
- Employees who gross more than $160,000 annually are deemed to be highly compensated employees (HCEs). The maximum contribution will be $3,000 – as determined by agency in accordance with federal non-discrimination testing requirements.
- For employees who gross less than or equal to $160,000 annually, the maximum contribution will be $7,500 – as determined by agency in accordance with federal non-discrimination testing requirements.
- Provide ongoing operational updates and troubleshooting support to City as needed.
- Provide a dedicated account manager and account executive that are fully responsive to agency concerns, including immediately reporting to agency any situation or circumstance that could potentially impact the administration of the account.
- Upon request, attend various employee, labor, and management meetings relating to Flexible Spending Accounts, COBRA, and AB528 administration.
- Monitor federal and state legislation affecting the delivery of plan benefits to participants and to report to City on those issues in a timely fashion, prior to the effective date of any mandated plan changes.
- Advise the City on pending legislation affecting administration of the Plan.
- Provide annual run-out reconciliation, carryover, and forfeiture reporting.
- Provide ad hoc reports as part of the normal services, with additional or customized reports available at no additional cost.
- Provide monthly plan utilization reporting, quarterly lag reporting, and annual plan utilization reporting.
- Clearly explain all instances when the card may be used (e.g., pharmacy, doctor’s office, vision provider, etc.).
- Provide customer service support in languages other than English.
- Provide access for employees to be able to track claim and account balance status online, via mobile application or via telephone.

- Contract Period/Term: 2 years
- Questions/Inquires Deadline: October 30, 2025