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Verde Services

A Division of Hub International Northwest, LLC

An extension of your human resources

Verde Services,  a division of Hub International Northwest, was formed in 1997 to provide Third Party Administration services in the areas of COBRA, Premium Only Plans (POP), Health Flexible Spending Accounts (FSAs) and Dependent Care Assistance Plans. As a result of our ever-changing healthcare environment, services have been expanded to include administration of Health Reimbursement Arrangements, and Commuter Benefits.

Health FSA

Employees Save 25% to 40% on Qualified Healthcare Costs

Health Flexible Spending Account

Employees set aside pre-tax payroll deductions in this account to pay for healthcare expenses not covered by insurance. The employee sets aside money, tax-free, through regular payroll deductions. During the year employees can be reimbursed directly from the account for those qualified healthcare services provided that are not covered by insurance.

Common expenses that qualify for reimbursement include: doctor visits, deductibles, co-payments, prescriptions, mental health care, dental services and orthodontics, chiropractor services, eye exams, glasses and contacts

Dependent Care Assistance

Dependent Care Assistance Plans

Employees set aside pre-tax payroll deductions in this account to budget for the day care expenses of a child under age 13.

Qualified expenses include: nannies, babysitters, housekeepers, nurse fees, and registration fees to a daycare facility. The cost of pre-K or nursery school, before and after school care, and day camp also qualify. To qualify, expenses paid for day care must allow an employee or the employee’s spouse (if married) to work or look for employment.

The IRS also offers employees the option of saving for day care with a credit that the employee can take on Federal Form 1040.


Employees Save 25% to 40% on the Cost of Day Care.

Health Reimbursement Arrangements (HRA)

Health Reimbursement Arrangements are funded with employer dollars to pay expenses not covered by another health plan. An employer can opt for its HRA to pay some or all of the health expenses allowed by the IRS. For example, an HRA could pay all eligible medical expenses, including premiums for health and long-term care insurance; or, the HRA could be limited to cover only dental or vision expenses. Although an HRA can have an option to carry forward unused funds to the future or for retirement, an employee cannot take their HRA funds to a new employer.

Commuter Benefit Accounts

The Commuter Benefit Account allows employees to pay for the expenses of parking near their place of employment and travel to and from work.

Employees set aside a certain amount of each paycheck into an account – before paying income taxes.

During the year, participants may access this account for transit and parking expenses. Payments from the account are tax-free to employees.

Payments for qualified expenses are also tax-free.

Adoption Assistance Accounts

The adoption account option is for expenses paid in connection with adopting a child.

Employees set aside pre-tax payroll deductions to pay qualified expenses, including home study and application fees, reasonable and necessary legal adoption fees, court costs, attorney fees, agency fees, medical services and counseling, travel and lodging fees and other expenses which are directly related to, and the principal purpose of which is legal adoption.

Adoption expenses that qualify for payment must be for an individual who has not attained the age of 18 at the time of the adoption, a child that is physically or mentally incapable of caring for himself, a child with special needs who cannot or should not be returned to the home of his or her parents and a specific factor or condition makes it reasonable to conclude that the child cannot be placed with adoptive parents unless assistance is provided as determined by a state. The child must be a U.S. citizen or resident.

Important Note

Although the participant won’t save FICA on amount set aside in the take care adoption account, the employee will save federal and state tax (were applicable). The annual limit in 2015 for paycheck contributions to an adoption account is $??,???. The annual limit is phased out ratably in 2015 for participants with a household Modified Adjusted Gross Income (MAGI) of $201,010, and is completely phased out when MAGI reaches$241,010. Employees that expect to pay more than the annual limit for any single adoption attempt might want to take advantage of both a tax credit on IRS Form 1040 and let the take care adoption account pay additional expenses.

COBRA Administration

When an employee’s benefits end due to a termination of employment or another qualifying event, the employer must offer the employee and/or covered dependents the opportunity to continue healthcare benefits.

Our clients are provided access to WebCOBRA, the employer simply enter the required information into WebCOBRA when coverage first commences and when someone has a loss of coverage due to a qualified event. From there, the burden is on us. We will issue:

  • The General COBRA Notice
  • Qualifying Event Notice to Qualified Beneficiary and Eligible Dependent(s)
  • Election Notices
  • Payment instructions and coupons
  • Maximum Continuation Letters
  • Termination Notices

Additionally, on behalf of our clients, we:

  • Monitors eligibility deadlines
  • Adjudicates COBRA eligibility
  • Collects premiums
  • Monitors premium payments, cancelling coverage upon non-payment of premium
  • Issues comprehensive management reports to our clients via e-mail or other preferred method