Plan Takeovers

Transferring the administration of your plan from your old TPA to Choice Strategies is simple!

The Takeover Process 


Our Implementation department ensures your plan is transferred quickly and seamlessly from your old administrator to Choice, while our Member and Client Service Teams are here to help with any questions. The takeover process involves just a few more steps than a normal plan implementation, increasing the timeframe by 3-5 business days.

Run-Out/Grace Period Takeovers

  • When Choice begins administering a new plan year, clients can choose to have their previous Third Party Administrator (TPA) administer the run out/grace period or have Choice take this over. To have Choice administer the run-out period, we will need current employee account balances after the previous TPA has stopped paying claims. (See step 2 below)  

Mid-Year Takeovers

  • To take over a plan mid-year, Choice will need the plan year start and end dates (example: 1/1/2013-12/31/2013) and the takeover effective date (when the previous TPA will stop processing claims and Choice will begin processing claims).
  • In addition to the employee account balances (see step 2 below) we need a completed enrollment template with each employee’s effective date. The employee’s effective date is when the employee was eligible within that plan year – either the beginning of the plan year or when they were eligible after the plan start date. This is not necessarily the takeover effective date; in that case, employees would not be able to be reimbursed for anything prior to this date.
    • Example: Plan year is 1/1/13-12/31/13. Takeover effective date is 5/1/13. Employee “A” is effective 2/1/13 since that is the date they became eligible to participate within that plan year.

Steps for a Successful Takeover

1. Notify the current TPA of termination. (Choice Strategies can provide a sample letter if needed.) We request that the client notify their previous TPA to stop paying all claims at least 15 days prior to the termination date. This gives enough time for the previous TPA to process backlogged claims and provide accurate reports to Choice by the takeover date. Please instruct employees to begin sending claims to Choice Strategies.

2. After all claims are finished being processed by the previous TPA, please send Choice Strategies a detailed report containing the below information for each participant. Failure to supply the requested information can delay the takeover process.

Choice Strategies provides an HRA Takeover Template FSA/DCA Takeover Template  and a Transit/Parking Takeover Template to assist you.  

  •  Employee Name (First and Last)
  •  Employee Social (Full SSN)
  •  Annual Election (Amount elected to be taken pre-tax from salary)
  •  YTD Deposit Amount: DCA only (Amount employee has contributed to the specified plan)
  •  YTD Disbursed (Total amount that has been paid to the member in the specified plan)

3. If the previous TPA uses BPS/FIS software, we will need the Enrollee Account Balance report in Excel format. (Please include the full SSN for each employee – do not mask the ID if the SSN is used as the ID by the prior TPA)

4. A transaction report may be requested by Choice Strategies to ensure we do not duplicate processing.

FSA Takeover Only : We do not recommend allowing employees to make changes to their election.

Parking/Transit Plans: We can apply any remaining balances from a previous Parking/Transit plan into the new Choice plan for employee use.  

Where do I Send the Takeover Information?

Takeover information can be sent to the Choice Strategies Implementation department:

  • Fax: 888-415-6471 
  • Mail: Choice Strategies, a division of WageWorks, P.O. Box 2205, South Burlington, VT 05407