Flex Spending Accounts and Seasonal Employees

[Guest Nini]

We have a client that is considering a plan, but they have a lot of seasonal employes. Any ideas on how to handle those contributions?

[oriecat]

exclude seasonal employees from eligibility?

[GBurns]

Seasonal employees are still people and they render valuable services.

What problem do you forsee that causes you to ask ?

The only problem that I see would be if they participated in an FSA, otherwise I cannot think of a problem.

If they have to pay an employee share for health insurance through a SRA, I would think that when they terminate employment the election also terminates along with the health insurance coverage. There only remains a problem with COBRA. However, that might not be a problem if they either do not elect COBRA because of cost or they move out of the serviceable area. Nothing else comes to mind at first glance.

[oriecat]

I believe the question is regarding FSA's, it's in the title, if not the actual post... that's what my response was replying to. I agree there is no reason to exclude them from a premium portion.

[GBurns]

I saw that, but still seasonal employees sometimes have the same needs as regular employees. They still have out of pocket expenses that will not be enough to exceed the 7.5% for itemization, assuming that itemization is even an option for any of them.

The problem will be employee communications and understanding especially about the "use it or lose it".

I would suggest using an employer funded MERP of some sort, with low caps. Since funding resources is a problem with many who employ these seasonal workers who are quite often migrant workers, I would suggest an employer pool or public subsidy as the funding source rather than employee salary reductions.

You should seek help from some creative thinkers.