PayPro Administrators

07/17/2025

Big Beautiful Bill and Dependent Care FSA and HSA Changes

Effective for plans that renew January 1, 2026 and later - Your new limit for the Child/Dependent Care FSA from $5000 to $7500.
Aside from a temporary increase in the American Rescue Plan Act of 2021, the limit was set by Congress in 1986 and has remained constant since then. The increase will benefit working families by lowering their cost of childcare, although the amounts are not indexed for inflation going forward. (this has not permanently changed since 1986)!
Summary: The new plan year limit beginning for January 1 2026 and later start dates will be $7500 for a married couple filing jointly or individual filing. If you are married and filing separately, your limit will be $3750 per plan year.

If you have a plan that you participate in or wish to participate that begins in January of 2026 or later, we will automatically adjust your plan limits to the new maximum and increase the limit within your enrolment materials and/or enrollment platform used by your Employer.

HSAs will have enhancements as well:

HSA eligibility for Bronze and Catastrophic ACA exchange plans
Starting in 2026, individuals enrolled in these high-deductible ACA plans—around 7.3 million people—can finally open and contribute to HSAs. This change empowers more Americans to save pre-tax for healthcare expenses.

Direct primary care (DPC) and HSAs can now coexist
DPC arrangements are no longer considered a separate health plan that would otherwise disqualify an individual from HSA eligibility. That means employees can now use their HSA funds for fixed-fee DPC services (up to $150/month for individuals or $300/month for families), offering more flexibility and access to personalized care.

Permanent reinstatement of pre-deductible telehealth coverage
The safe harbor for employers to offer telehealth coverage before meeting the deductible is now permanent and retroactive to the start of the year—making it easier for companies to support accessible, affordable care.

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05/16/2024

What can your employees do to raise mental health awareness in the office? Let’s explore some ideas you can implement in office this May!

04/23/2024

04/11/2024

Flexible Spending Accounts (FSAs) might seem like just another mundane part of adulting, but they do have their quirks. Here are some fun and funny facts about FSAs:

Use It or Lose It: Unlike your leftovers in the fridge, you can’t keep FSA funds indefinitely. If you don’t use the money by the end of the year—or the grace period your employer might offer—you could say goodbye to those dollars.

Surprise Shopping Spree: As the deadline looms, many find themselves on an unexpected shopping spree, buying things like bandages, sunscreen, or even acupuncture sessions just to use up their FSA funds.

Tax-Free Tampons: Thanks to the CARES Act of 2020, your FSA can now cover feminine hygiene products. That’s right, tax-free tampons and menstrual underwear.

Therapy at Your Fingertips: Feeling stressed? Your FSA can cover online therapy services, so you can chat with a therapist from the comfort of your home—and on pre-tax dollars.

Glasses Galore: Need a new look? FSAs can be used for eyeglasses and contact lenses, including prescription sunglasses and, for a bit of fun, prescription colored contacts.

Dental Delights: You can use your FSA for uninsured dental services. So, if you’ve been putting off that teeth cleaning or need a new retainer, your FSA has got you covered.

Savings Superpower: Putting money into an FSA can save you an amount equal to the taxes you would have paid on that money. For example, if you’re in the 30% tax bracket and contribute $2,000 to your FSA, you could save $600.

Remember, while FSAs can be a bit of a puzzle at times, they’re also a great way to save on healthcare costs—just don’t forget to spend that money before time runs out!

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02/07/2024

While I don't care for some of the words used in this report, it is a very informative read

WASHINGTON, Feb. 6 – Sen. Bernie Sanders (I-Vt.), Chairman of the Senate Committee on Health,...

12/11/2023

PayPro TPA has some exciting news to share! We've teamed up with Employee Navigator to bring you a seamless benefits administration experience for your FSA/HSA/HRA and COBRA . With this integration, you can say goodbye to the hassle of managing employee benefits manually. Employee Navigator's software will simplify the process, making it easier for you to provide your employees with the benefits they need. With PayPro TPA and Employee Navigator on your side, you can focus on what really matters: your business. Let us take care of the rest!

12/11/2023

A PayPro (partial Team) luncheon was on Friday! We had some great laughs, a delicious meal, and enjoyed being together. Team building exercises were Team Building FUN!

12/11/2023

Wishing everyone a wonderful a wonderful Season. We are hard at work with year-end services as you likely are too!

08/25/2023

What's all the chatter about ICHRAs? Well, they are better than QSEHRAs. But for groups - careful consideration and advice is necessary. That's why working with your broker or agent is very important.

As self-funding gains traction, brokers and advisors must also stay informed about other evolving strategies and trends in the industry.