If your company sponsors Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), Health Savings Accounts (HSAs) or Transit/Commuter benefit accounts, you may be given the option during open enrollment to get an account-linked benefits debit card.
With a benefits debit card, you can receive auto-substantiation at the point of sale. That means at many vendors, such as pharmacies, grocery stores, and doctors’ offices, your purchase is automatically verified. That means you don’t have to spend time filling out claim paperwork and submitting it to your administrator. Keep in mind, your administrator may require proof for record keeping, so hang on to those receipts.
If your administrator offers a mobile app or online claims, it’s easy to submit those required receipts. Snap a quick photo and with a few clicks you’re done. Most TPAs also accept faxed receipts.
Whether you have an FSA, HRA, HSA or Transit/Commuter account, those are your dollars to use. With a benefits debit card, you have instant access to those funds, unlike having to wait for claim reimbursement.
The locations where you can use your debit card are restricted by merchant category codes (MCCs). Approved vendors include medical clinics, pharmacies, eye care centers, day care facilities, bus and train terminals, etc. Why is this important? It prevents theft and benefit fraud. For instance, you cannot use the debit card at a movie theater or gas station. In addition, many retailers use inventory codes to ensure that only approved items and services may be purchased with the card
Modern technology allows for all of your benefit accounts to be linked to a single card. For example, you can have a dependent care FSA, healthcare FSA and transit account all on the same card. When you pay for goods and services, the MCC codes help identify which funds to pull from.
Check with your employer’s plan document to see if the company offers a benefits debit card. It’s a convenient and secure way to make the most out of your benefit accounts.