The Preferred Group’s Self-Funded employee benefit plan is one in which the employer pays members for eligible claims related to the plan. This is different from a fully insured employee benefit plan where the employer/employee pays premiums to an insurance company, which then assumes the risk for paying member eligible claims.

With a Self-Funded plan the employer assumes the risk and sets up the parameters of the plan.  The employer will have the capability to custom design a plan to fit the needs and benefits of the employees.  Large companies that Self-Fund tend to offer more generous benefits than those that use fully-insured plans.

Key Benefits to an Employee

• Lower Premiums
• Employee Specific Benefit Plan
• Increased Benefits
• Rapid Claims Adjudication
• Custom Provider Network

The Preferred Group’s Commuter Reimbursement Account allows you to set aside a portion of your gross salary to pay for work-related parking and mass transit expenses using pre-tax dollars.  Paying your commuter expenses with pre-tax dollars can save you an average of 30 to 40% on your annual taxes.

Expenses that are eligible for reimbursement under our plan include:

• Parking your personal vehicle in a facility at or near your place of employment.
• Parking at a location from where you commute, e.g., a Park and Ride lot, train station or a commuter bus pick up point.
• Transit passes to and from work, including the cost of tokens, passes, fare cards, vouchers, etc.
• Mass transit public systems (Mass transit can be a public system, or a private enterprise provided by a company or individual who is in the business of transporting people in a "commuter highway vehicle.") 

Expenses that are not eligible include:

• Tolls
• Traffic tickets
• Fuel
• Mileage costs or other costs incurred in operating a vehicle
• Taxis
• Carpooling with a neighbor or friend
• Parking at a Mall or similar location
• Costs that have been paid by your employer

How Much Can I contribute to the Commuter Reimbursement Account?

You may pre-tax any amount up to the monthly maximums set by the IRS.

The maximum monthly pre-tax contributions allowed are: 

• $230 for mass transportation
• $230 for qualified parking

These costs may be combined for a Total of $460.00 monthly.  This is a savings of $1,932.00 annually over post tax costs for parking and mass transit. 

Example:

If you are currently paying $125.00 a month to park your vehicle or to use mass transit, you are actually spending $168.75 for this expense when you pay with post tax dollars.  Paying with pre-tax dollars will save you $525.00 annually.

When employees use our Pre-Paid Benefits Card to pay for qualified transportation costs at a merchant accepting MasterCard^®, funds are automatically deducted from the pre-tax dollars in their Commuter Reimbursement Account. Employees can view their account online at www.thepreferredgroup.com to keep apprised of charges, contributions, and current balances for the remaining plan year.

 

The Preferred Group can assist your employee association, union trust fund, and employer group with the establishment and ongoing maintenance of a Heath and Welfare Fund Benefit Plan.  We will consult with your organization to help determine the best benefits for the available funds.  Self funded benefit plans offer significant advantages over insured plans in both flexibility and cost containment for such employee benefits as dental, vision, prescription drug, flexible supplemental health, legal and other insured or self-insured benefits the trustees or employer may wish to offer.  The Preferred Group’s full service administration is fully HIPAA compliant and will take the problems out of ensuring your organization has the best benefits at an affordable cost.

Since you’re currently enrolled in a Flexible Spending Account and/or HRA program, you already know the benefits of using pre-tax funds to pay for health-related, out-of-pocket costs not covered by your insurance. And, by using a card with your FSA/HRA, you do not need to pay cash up front for eligible expenses and then wait to get reimbursed.

• In order to request a Prepaid Benefits Card your employer must offer the card.
• The benefit cards are used for eligible expenses allowed through your employer’s health plan.
• All receipts must be kept in case they are requested for substantiation regarding eligibility of an expense.
• The expenses must not have been previously submitted for reimbursement.
• Co-payment transactions that “match” the co-payment schedule in the card system will auto-substantiate. All other transactions will initiate an email letter requesting submittal of receipt for substantiation. All receipts must be retained.
• Two (2) benefit cards will be received upon enrolling.
• The card cost per year is $18.00.
• The card is used for three years, after which a new card will be issued.
• The card will be reinstated each year unless a Card Termination Form is submitted to The Preferred Group.
• General communications regarding account information and any requests for the

substantiation of charges will be done via email.

• Requests for the substantiation of charges that are not answered/validated may result in

card suspension.

• If a card is lost/stolen or damaged, there is a fee of $5.00 for replacement. Two (2)

replacement cards are provided.