Flexible Benefit Plans (also called Section 125 Plans, Cafeteria Plans or Flexible Spending Account Plans) permit employees to pay for certain health-related and dependent care expenses on a pre-tax, rather than an after-tax, basis. The federal government permits this under Section 125 of the Internal Revenue Service Tax Code, which allows an employer to sponsor this plan.
Health Reimbursement Arrangements (also known as Health Reimbursement Accounts or HRAs) are tax-advantaged, employer-funded medical reimbursement plans that help manage increasing health care costs. Like Flexible Benefits Plans, HRAs are used to pay for qualified medical expenses for employees and their families.
The NYSUT Member Benefits Trust has negotiated special discounted prices and services with third-party administrators P&A Group and The Preferred Group to provide Health Reimbursement Arrangement and Flexible Benefit Plan endorsed services for the administration of these types of plans. The cost of these services is negotiable.
Please contact Member Benefits with any questions at 800-626-8101 weekdays from 9 a.m. to 5 p.m. (EST).
The Preferred Group Plans, Inc. and P&A Group Flexible Benefit Plans and Health Reimbursement Arrangements are NYSUT Member Benefits Trust (Member Benefits)-endorsed programs. Member Benefits has an endorsement arrangement of $.20 per participant per month with an additional $.05 for each participant in an additional endorsed program with The Preferred Group Plans, Inc. and $.10 per participant per month with P&A Group. All such payments to Member Benefits are used solely to defray the costs of administering its various programs and, where appropriate, to enhance them. Member Benefits acts as your advocate; please contact Member Benefits at 800-626-8101 if you experience a problem with any endorsed program.