Diversified Benefit Services

What Diversified Benefit Services does

Diversified Benefit Services, Inc. (DBS) is a Wisconsin-incorporated third-party administrator (TPA) headquartered in Hartland, Wisconsin, specializing in account-based employee benefit plans. Founded circa 1989, the company administers Flexible Spending Accounts (FSAs, including Health Care and Limited Purpose), Health Reimbursement Arrangements (HRAs), Individual Coverage HRAs (ICHRAs), Health Savings Accounts (HSAs), COBRA continuation coverage, Premium Only Plans (POPs), Pre-Tax Parking Plans (PPPs), and ERISA Wrap Documents. DBS's core technology is its proprietary A.S.A.P.® (Advanced Strategic Administration Program) online portal, complemented by a mobile app on iOS and Android that supports 24/7 claim filing, account views, supporting-document submission and debit-card substantiation; an overhauled HSA platform launched in November 2023, and a next-generation ICHRA platform was rolled out in November 2025. DBS charges professional-services administration fees under multi-year contracts on a quote-based, broker-commissionable model, with publicly undisclosed specific pricing. The company's go-to-market is primarily a national broker/consultant channel, supplemented by direct employer outreach via its website and a toll-free sales line, plus channel partnerships with insurance carriers, accountants and — most recently — the Wisconsin Manufacturers & Commerce association. DBS is founder-led by Tim Pederson, operates as a private corporation with no disclosed institutional investment, and targets employers of all sizes (with explicit positioning toward Wisconsin and tribal employers) nationally.

Name

Diversified Benefit Services

Legal name

Diversified Benefit Services, Inc.

Website

https://dbsbenefits.com

Company type

Private

Founded year

1989

Operating status

Operating

Headcount range

51–100 employees

Short description

Diversified Benefit Services is a Wisconsin-based third-party administrator of account-based employee benefit plans — FSAs, HRAs, ICHRAs, HSAs, COBRA, POPs, PPPs and ERISA Wrap Documents — serving employers nationally through broker/consultant channels via its proprietary A.S.A.P.® platform and mobile app.

Ownership category

akta.pro rank

Product category

Employee Benefits Third-Party Administration

NAICS

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292)

SIC

Insurance Agents, Brokers & Service (6411), Services-Computer Programming, Data Processing, Etc. (7370)

akta.pro primary industry

Flexible Benefits Administration (FSA/HSA/HRA) (HLAEALAK)

akta.pro secondary industries

Eligibility, Enrollment & Benefits Administration (HLAEALAH), Self-Funded Employer Plan TPA (ASO Administration) (HLAEALAA), Benefits Administration (BPACAPAC)

Keywords

• Third party administration
• Benefit plan design
• FSA HRA administration
• HSA administration services
• COBRA administration services

Headquarters

HQ city

Hartland

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Others

Revenue model

1. Third Party Administration Fees: DBS charges fees for administering account-based benefit plans including FSAs, HRAs, ICHRAs, HSAs, COBRA, Premium Only Plans, Pre-tax Parking Plans, and ERISA Wrap Documents. The broker quote form includes options to include or exclude commissions for broker firms, indicating a B2B fee structure with broker intermediation.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels7 records

Core offering

Diversified Benefit Services (DBS) is a third-party administrator (TPA) that designs, enrolls, administers, and services account-based employee benefit plans for employers nationally. Its offerings span FSAs, HRAs, ICHRAs, HSAs, COBRA administration, Premium Only Plans, Pre-Tax Parking Plans, and ERISA Wrap Documents, delivered through its proprietary A.S.A.P.® web portal and DBS Mobile App.

Product overview

Diversified Benefit Services (DBS) is a third-party administrator (TPA) providing a unified account-based benefit administration platform centered on its proprietary A.S.A.P.® (Advanced Strategic Administration Program) online portal and mobile app. The product portfolio spans eight core account-based benefit modules: Flexible Spending Accounts (FSAs) including Health Care FSA and Limited Purpose FSA, Health Reimbursement Arrangements (HRAs), Individual Coverage Health Reimbursement Arrangements (ICHRAs), Health Savings Accounts (HSAs), COBRA Administration, Premium Only Plans (POPs), Pre-Tax Parking Plans (PPPs), and ERISA Wrap Documents. These products are offered as an integrated suite — participants access all account types through the A.S.A.P.® web portal or mobile app, enabling unified claim submission, reimbursement processing, and account reporting across the benefit ecosystem.

Differentiator

Problem solved

Functional benefit

Brands

• A.S.A.P.® (Advanced Strategic Administration Program): DBS's proprietary online account viewing and claims submission system for participants to access their FSA, HRA, and other benefit account information.

Products and services

• Flexible Spending Accounts (FSAs) Tax-advantaged account administration allowing employees to pay for qualifying medical, dental, vision, and dependent care expenses on a pre-tax basis. Includes general purpose Health Care FSAs and Limited Purpose FSAs (LPFSA) for dental and vision expenses. Targeted at employer-sponsored benefit plans.
• Health Reimbursement Arrangements (HRAs) Administration of employer-funded accounts that reimburse employees for out-of-pocket health, dental, or vision expenses on a tax-free basis. Supports manual claims submission, claims data feeds, and direct provider payment plan designs.
• Individual Coverage Health Reimbursement Arrangements (ICHRAs) Administration of a modern employer-funded benefit allowing employees to access tax-free funds to reimburse individual health insurance premiums (including Medicare) and out-of-pocket medical, dental, and vision expenses, with automated direct deposit reimbursements and tailored plan design.
• Health Savings Accounts (HSAs) Administration of individually owned, tax-exempt trust accounts enabling employees to save and pay for current and future qualified medical expenses with triple tax advantages (pre-tax contributions, tax-free earnings, tax-free withdrawals).
• COBRA Administration Administration of Continuation of Health Benefits as required under COBRA for employers with 20 or more employees, including election notifications, premium billing, and ongoing compliance management.
• Premium Only Plans (POPs) Pre-tax benefit administration allowing employees to pay for group insurance premiums through payroll deduction on a tax-free basis, reducing taxable income for both employee and employer.
• Pre-Tax Parking Plans (PPPs) Pre-tax benefit administration enabling employees to receive tax-free reimbursement of qualified work-related parking expenses, reducing taxable compensation.
• ERISA Wrap Documents Legal document services consolidating multiple benefit plans into a single compliant plan document to help employers meet federal disclosure and reporting requirements under ERISA.
• A.S.A.P.® (Advanced Strategic Administration Program) Proprietary online portal enabling participants and administrators to view claim information, account balances, reimbursement details, submit claims, upload enrollment files, manage participant demographics, and access reporting for FSA, HRA, and HSA accounts.
• DBS Mobile App Mobile application enabling participants to file claims, view claim status, view account history, submit supporting documentation, and substantiate debit card transactions on the go. Available on Google Play and Apple App Store.

Quantifiable outcome

• Employees can save up to 30% in taxes on health care expenses through FSA and HSA participation

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Wisconsin Manufacturers & Commerce (WMC)coreGTM or Marketing Partner · 3 November 2025DBS partnered with WMC (the state's combined chamber of commerce and manufacturers' association) to offer discounted Individual Coverage Health Reimbursement Arrangement (ICHRA) plans to WMC's membership. The partnership provides WMC members with a five percent discount on the standard Diversified monthly administration fee for new ICHRA Administrative Services. Tim Pederson, Founder/President of DBS, stated this partnership delivers the 'next generation ICHRA solution designed to meet the evolving needs of Wisconsin employers.'
• The BancorpminorOthersThe Bancorp serves as the banking partner for DBS HSA accounts. In 2014, The Bancorp announced a fee increase for HSA mailed paper statements from $1.25 to $2.50 per month effective July 1, 2014, with online statements offered free as an alternative.
• Insurance CarriersminorStrategic or Co-development PartnerDBS works with insurance carriers as part of their network of partners for benefit plan administration. Carriers may send data feeds to DBS for claims processing in HRA arrangements.

Scale indicators2 records

Recent moves4 records

Expansion highlights5 records

Direct peers

• Ameriflex: Ameriflex is a third-party administrator of FSAs, HRAs, HSAs, COBRA, and commuter benefits, serving employers of all sizes nationally. It is among the closest direct competitors to DBS because it sells an overlapping suite of account-based benefit products through a similar broker/consultant channel.
• BASIC (Benefit Account Services, Inc.): BASIC is a TPA specializing in FSA, HRA, HSA, and COBRA administration, among other account-based plans, and serves employers nationwide. It is directly comparable to DBS in product mix (consumer-driven healthcare accounts), target market (mid-market and large employers), and broker-led GTM.
• Starbridge Benefits (formerly Employee Benefits Corporation): Starbridge Benefits provides third-party administration of FSAs, HRAs, HSAs, COBRA, and retiree billing — virtually the same product suite as DBS. Operates nationally with a heavy broker/consultant distribution model, making it a high-relevance direct peer.
• Lighthouse Benefit Solutions: Lighthouse Benefit Solutions is a TPA administering FSAs, HRAs, HSAs, and COBRA for employers, with a comparable mid-market focus and broker channel. Overlapping product portfolio and customer profile make it a relevant direct comparator to DBS.
• BeneSys, Inc. BeneSys is a third-party administrator that designs and administers employee benefit programs including FSAs, HRAs, HSAs, and COBRA. Strong overlap with DBS in product mix and target customer (multi-employer/mid-market employers), making it a comparable direct peer.

Broad incumbents

• WEX Health (formerly Discovery Benefits / WageWorks): WEX Health operates one of the largest consumer-directed benefit administration platforms (HSAs, FSAs, HRAs, COBRA, commuter) following WageWorks/Discovery consolidations. Overlaps directly with DBS's product offering but at significantly larger scale and with broader employer reach, making it a broad incumbent competitor.
• HealthEquity: HealthEquity is a leading HSA custodian and administrator that also administers FSAs, HRAs, and COBRA. While larger and broader, it competes directly for HSA, FSA, and HRA employer relationships that DBS pursues, especially through broker channels.
• ADP TotalSource / ADP Benefits Administration: ADP's benefits administration offering administers FSAs, HRAs, HSAs, and commuter benefits as part of its broader HR outsourcing and PEO platform. ADP competes for the same employer customers as DBS, particularly through broker channels, but with vastly larger scale and broader product portfolio.
• Benefitfocus (OneDigital / Vertafore): Benefitfocus is a benefits administration technology platform serving large employers and insurance carriers across health, welfare, and consumer-directed accounts. While more platform-oriented than a pure TPA, it competes for the same employer benefits decision-maker relationships that DBS pursues via brokers.

Emerging players

• Further (formerly Sum1140/Fringe): Further provides consumer-directed benefit administration solutions (HSAs, FSAs, HRAs) with a modern technology platform. While focused heavily on HSAs, it competes for account-based benefit employer customers that DBS targets.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/DiversifiedBen
• Facebookfacebook.com/DBSBenefits
• LinkedInlinkedin.com/company/diversifiedbenefitservicesinc

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Diversified Benefit Services