DataPath, Inc. To Serve As Health Savings Account Administrator To The State Of Arkansas
Date Published: Wednesday, April 28, 2004
Little Rock, AR (April 28, 2004) – DataPath, Inc., a leading provider of software solutions for employee benefits in Little Rock, AR, has been named as the State of Arkansas's Health Savings Account (HSA) Administrator for the 2005 and 2006 benefit plan years. DataPath was selected because of their responsiveness to the market, web utilities for the account holder, and experience in the MSA marketplace.
Take a look at an article written about DataPath in the Arkansas Democrat Gazette, click here
Health Savings Accounts were recently enacted through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. Effective January 1, 2004, an individual who is covered by an HSA Qualified Health Plan can have a savings account where money can be deposited, accumulated and withdrawn tax-free. This new program empowers the individual with the ability to spend their money, as they need to, or retain and invest their deposit for future medical expenses. An HSA is very similar to an individual's savings account, housed at their local bank; however, disbursements can be taken at any time for any qualified medical expense tax-free.
DataPath will be providing administration on a group level for the new benefit. The services provided by DataPath go far beyond what an individual could do on their own. Federal law allows individual or self-administration, but group administration is more efficient and better for the employer as a whole. Administration services to be provided to the state, include:
- Certification to the State & employee that the insurance is HSA qualified.
- Establish the account for the employee at an Arkansas bank to service as a custodian.
- Provide web access to the account for on-line banking.
- Manage the payroll deductions through a Cafeteria Plan to increase the tax savings to the State as well as the individual.
- Certification that the employee is contributing to the account only when eligible.
- Contribution management to help eliminate over-contributions and the associated tax penalties.
- Certification for disbursements from the account to show that expenses were qualified and tax-free.
- Provide reporting throughout the year and at the end of the year to assist in filing Tax Form 1040.
- Offer investments for the account holder with retained contributions from previous years
Enrollment for the Public School Employees will be throughout the month of August and the State Employee will enroll in October. "We are excited about this opportunity to work with the State of Arkansas,” said John Robbins, Sr., president of DataPath. "This type of health plan can save from 15 to 25 % on monthly premiums and provides the employee an opportunity to save even more because the contributions are tax-free. The real power of an HSA is in the tax savings."
For more information on Health Savings Accounts and the State of Arkansas plan, contact DataPath at 501-296-9990, or call Benjamin Lewis of Perception, Inc. at 301- 963-7555.
DataPath, founded in 1984, is a management-owned, privately held company based in Little Rock, AR, and produces software solutions for administering employee benefit plans. Clients include employers, outsourcing benefit consultants, and plan service providers.
Please refer to the file below for additional information.