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125 Health FSA Funding


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Question on TPA's that offer FSA debit cards and hold employer funds as a benefit plan "pre-fund” amount: do you typically base that amount off a percent of the total annual elected amounts for the FSA Health or a atraight dollar amount? If you go by a percent, what percent you do utilize? Is that across the board to all clients or something taken on a case-by-case basis considering the size of the plan? 

Just curious to see what TPA's are doing in this situation. I have come across some that do a flat dollar amount ($5k) which I find interesting considering that amount to one plan could be nearly the whole annual election totals but could be a drop in the bucket to another. 

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