Back To Top

DBS History

Three Decades of Success in America’s Heartland.

Diversified Benefit Services, Inc. (DBS) is a Wisconsin-based, industry leading third party administrator (TPA) established in 1987. We have hundreds of clients of all sizes located across the country. We provide comprehensive plan design and reimbursement strategies and administration as well as communication and enrollment solutions for FSAs, HRAs, Wellness HRAs, HSAs, Member Benefit Programs for tribes, COBRA and other customized programs.

Our excellent staff, industry knowledge and experience have allowed us to develop and implement innovative solutions for private, public, tribal and non-profit clients. We have extensive experience in program design, communication, enrollment and reporting. At DBS our full range of administrative services is supported by a federally registered and trademarked proprietary software administration system developed and owned by DBS.


Historical Markers

1987 – DBS was founded in 1987 as the first Wisconsin Third Party Administrator (TPA) to combine plan design, employee enrollment and claims processing services for Flexible Benefit Plans.

1987 – Successfully lobbied Congress and the House Ways & Means Committee members in conjunction with other businesses to defeat a proposed $500 cap on all Flexible Benefit Plan contributions.

1989 – Achieved employee participation FSA rates well above national averages due to effective employee enrollment and communication services.

1989 – Assisted in the repeal of the ‘Section 89’ benefit plans discrimination testing law.

1990 – Implemented the government mandated FSA Uniform Coverage Rule for all clients.

1996 – Federal legislation was enacted to create Medical Savings Accounts (MSAs). The president of DBS met Congressman Archer and his staff members in Washington, D.C. to discuss the ideas behind the ‘Archer MSA’ legislation and provide comments.

1998 – The first Wisconsin TPA to establish Deductible Reimbursement Plan (DRP) services that included the design, communication and claims processing services for higher deductible insurance plans.

2002 – IRS guidance provided for the creation of Health Reimbursement Arrangements (HRAs) that would transition DRP type plans.

2004 – Designed and developed a proprietary software administration program called “Advanced Strategic Administration Program” (A.S.A.P.®) that allowed DBS to administer basic as well as futuristic complex account based benefit plans.

2004 – Legislation expanded MSAs to become today’s Health Savings Accounts (HSAs).

2005 – DBS provided complete design, enrollment and administrative services for the first Wisconsin municipality to implement an HRA. The municipality saved approximately $750,000 in health costs during the first year of the HRA.

2006 – DBS provided FSA claims processing services for a Wisconsin-based hospital client that included a new provider claims file feature that allowed FSA claims to be processed and reimbursed on a paperless basis. DBS worked with the 2nd largest insurance carrier in Wisconsin to accomplish this milestone.

2008 – DBS provided complete design, enrollment and administrative services for the first Wisconsin public school district to implement an HRA. The district saved approximately $150,000 in health costs during the first year of the HRA.

2008 – DBS was one of the first TPAs to provide claims processing services that allowed providers of services to be paid directly for clients with HRAs.

2008 – DBS worked with the largest Wisconsin teacher’s union insurance carrier to send secure claim files for the first time ever to a TPA. The claim files were sent on behalf of the school district and allowed DBS to administer a ‘pay the provider’ type HRA.

2010 – Affordable Care Act became law.

2010 to 2012 – DBS served as a participant on a national association committee that ultimately guided the Centers for Medicare and Medicaid Services (CMS) to significantly modify the rules pertaining to HRA MSP reporting by TPAs.

2012 – DBS secured a letter from the Wisconsin Medicaid Division to exclude account-based benefit plans from a new State Medicaid reporting requirement. This was a first in the nation exclusive accomplishment by DBS with the State of Wisconsin.

2013 – The FSA Use-or-Lose Rule was modified to allow for the carryover of up to $500 of unused funds for Health Care FSAs (HCFSAs).

2014 – DBS enhanced the A.S.A.P.® software to include comprehensive enrollment and administration of Tribal Health Benefit Programs (HBPs) for American Indian tribes.

2014 – The Tribal General Welfare Exclusion Act (GWE) was passed and signed into law for American Indian tribes.

2015 – The DBS proprietary A.S.A.P.® software system was formally approved by the government and was awarded federal registration and trademark certificate.

2015 – DBS in conjunction with a debit card service provider established the first nationwide card network for utility service providers. This accomplishment allowed DBS to become the first TPA to provide comprehensive enrollment and administrative services for American Indian tribes adopting a Tribal Utility Benefit Program (UBP) under the Tribal General Welfare Exclusion Act (GWE) of 2014.

2016 – DBS enhanced the A.S.A.P.® software to include program design, enrollment and administration of Member Benefit Programs for tribes (MBPs). This allowed DBS to become the first TPA in the nation to provide such comprehensive services to American Indian tribes.

2018 – A two-year delay of the ACA high value health plan tax, also known as the ‘Cadillac Tax’, was passed as part of a federal spending bill.  The 40% Federal excise tax – the ‘Cadillac Tax’ – will go into effect in 2022 and will tax the total value of numerous health & employee benefit plans, including FSAs, HRAs and HSAs.

2019 – DBS meets with a representative from the White House Domestic Policy Council in Washington, D.C. to discuss the Cadillac Tax and the Employer Exclusion (ESI).

2019 – On December 20, 2019 the ACA high value health plan tax known as the ‘Cadillac Tax’ (a 40% Excise Tax on employer sponsored coverage) was repealed in full when the Further Consolidated Appropriations Act of 2020 was signed into law.  This was great relief for employers sponsoring Flexible Spending Accounts and other employee benefit plans and allowed for continued future expansion.

2020 – On March 27, 2020 the requirement to have a prescription for over-the-counter (OTC) drugs in order to be able to use Health Care FSA or HSA funds for the OTC expenses was removed as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  This Act and future IRS notices such as Notice 2020-29 included a number of measures to assist with employer sponsored health coverage, Healthcare Flexible Spending Arrangements, dependent care assistance programs and the nation’s response to the COVID-19/Coronavirus outbreak.

2021 and beyond – the story continues!