Alegeus Supports Voluntary Employee Benefit Associations (VEBA)
Published on September 15th, 2016
Did you know the Alegeus platform was designed to manage the unique requirements of Voluntary Employee Benefit Associations, or what is more commonly known in the market as VEBA? Alegeus clients can easily offer and administer VEBA programs leveraging their existing platform, operational infrastructure and customer engagement channels.
What exactly is a VEBA?
A VEBA is a tax-exempt employee benefit trust – which has been used for years by private sector and Taft-Hartley health and welfare benefits. They are a type of reimbursement arrangement in which employers contribute funds on behalf of their employees into trust accounts. The funds placed in these trusts can then be used by employees to pay for eligible healthcare-related expenses – similar to other tax-advantaged benefit accounts. For businesses that already offer flexible benefit accounts, VEBAs are a natural extension of their product portfolio.
What do the capabilities include?
Built on the strong foundation of Alegeus’ industry-leading HRA capabilities, the Alegeus platform provides comprehensive administrative and operational support for VEBAs – including plan setup, configuration, funding, claims processing, debit cards and more. The platform also includes specialized capabilities to handle the unique characteristics of VEBAs – such as configuring maintenance fees and interest models, integrated investment options, and the ability to hold funds at the trust of your choosing. And, VEBAs are now a seamless component of our consumer engagement channels – including mobile, online, IVR and more.
"At Peak1, we view VEBAs as a tremendous untapped market opportunity. Today’s rising healthcare costs are prompting unions and public sector clients to consider alternatives to traditional employee health benefit models – just like all private sector employers. They’re looking for new, cost-prohibitive options that can help mitigate employees’ rising financial responsibilities. In addition to supporting our core CDH offerings (including FSAs, HSAs, HRAs), the Alegeus platform will enable Peak1 to win new business and strengthen customer relationships – with a full-featured VEBA product offering that offers tremendous competitive advantage.” Greg Emerson / Peak1 Administration, COO
I am a current client and already offer VEBAs. What does this mean to me?
Alegeus clients who currently offer VEBA products can now look to Alegeus for complete administrative and operational support – as a seamless extension of our existing benefit account technology partnership. Contact your Account Executive to learn more.
For more information on the Alegeus VEBA administrative solution, contact your Alegeus Account Executive, contact us for more information or watch our webinar, “Expand Your Market Opportunity with VEBAs”.