Benefits Blog

Top 5 FAQ of 2019

Posted by Sierra Betterley on Sunday, January 19, 2020 @ 11:58 PM

Health Spending Accounts are confusing! The IRS has so many rules! Sometimes it’s hard to figure out what you can use your funds on, and what you cannot. With medicine and law ever-changing, and the rising tensions related to healthcare coverage, questions are inevitable. We’ve tallied up the Top 5 Frequently Asked Questions of 2019 and answered them.

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Can I use my FSA/HSA debit card for OTC items?
otc

 

Healthcare costs in the U.S. are higher than anywhere else in the world—and pressures are mounting along with expenses. In 2018, Americans borrowed $88 billion to pay for their healthcare; a quarter skipped a needed medical treatment because of cost; and nearly half feared that a major health event would bankrupt them. In this current climate, home remedies and over-the-counter solutions play a huge part of healthcare.


So, what can I pay for with my FSA/HSA debit card?

Over-the-counter (OTC) items are eligible for payment with a Medical Flexible Spending Account/ Health Savings Account without a prescription. OTC drugs and medicines are eligible as well, but require a prescription for reimbursement.
Over-the-counter items reimbursement is not eligible with a Limited Care Flexible Spending Account or a Dependent Care Flexible Spending Account.

Why do over-the-counter medications require a prescription?
With the passage of the Affordable Care Act in 2011, new standards were put into place requiring prescriptions for the reimbursement of over-the-counter items. Only over-the-counter items that contain a medical ingredient require a prescription for reimbursement. Items like bandages, first aid supplies, thermometers, sunscreen, heating pads, etc. are eligible without a prescription.

Find Eligible Items:
HSA Store
FSA Store
Health Shopper

 

What are the copay rules when it comes to HSA/FSA usage?

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In the age of Hight Deductible Healthcare Plans, Co-payments, co-insurance, and deductibles are all extremely important factors to keep in mind when choosing a healthcare plan. You have to consider medical history, prospective premiums and regular care costs to find the appropriate plans and accounts for their needs.

Copays ARE eligible expenses for use with your Flexible Spending Account/Health Savings Account. Co-payment reimbursement is not eligible with a Limited Care Flexible Spending Account or a Dependent Care Flexible Spending Account.

As long as the underlying service/item is a qualifying, eligible service/item, you may use your Medical Flexible Spending Account/ Health Savings Account to pay for copayments, coinsurances, and deductibles.

 

Why is my receipt not accepted? Why am I being asked for substantiation?

substantiation

When it comes to pre-tax benefits such as FSAs and HSAs, the IRS makes the rules. The IRS is permitting you to use the tax-free funds in an FSA or HSA, and in exchange, they require evidence that funds were used for eligible expenses.  If we aren't able to automatically verify the transaction, we may ask for receipts to substantiate your eligible charge. We get it. Paperwork isn't pretty. That's why we have a variety of easy ways to submit your receipts!

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Why do certain expenses seem to ALWAYS get flagged?

Where you buy a service or purchase has a greater influence on eligibility verification than what service or purchase you buy. If a vendor does not have an IRS-approved Inventory Information Approval System (IIAS) in place, the transaction has a higher probability of requiring verification.  For example, pharmacies often feature the system while doctors’ offices, like a dentist, frequently do not.

How do I submit receipts?
24HourFlex will contact you by email or letter when a card transaction requires verification, with directions to your online account for detailed information. The required receipts can be submitted securely and be matched properly to your account by uploading them online or by downloading the mobile app.

 

 

Where can I find my balance?

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When you log in to your consumer portal, you’re brought to the homepage.
On the homepage, you’ll see four tabs: Home, Accounts, Tools & Support, and Message Center.
Click on the Accounts tab.

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This is the Accounts page. The Accounts page gives you an overview of current and recent plan years, as well as provides access to account activity, claims, payments, and total available balances.  Account activity will show all account transactions including payroll deductions and contributions.

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Can I use my FSA/HSA funds to pay for CBD Products?

CBD

CBD (Cannabidiol) oil and other products are becoming more and more popular as an alternative treatment for many health concerns. CBD proponents claim benefits like pain relief, anxiety reduction, arthritis and inflammation treatment, and even insomnia relief.

Unlike prescription medication, CBD is not addictive and boasts very few adverse side effects.

Although CBD is legal in all 50 states, The IRS has yet to issue guidance on the eligibility status of CBD oil and products, so they are ineligible for purchase with funds from Medical Flexible Spending Accounts, Health Savings Accounts, Health Reimbursement Arrangements, Limited Care Flexible Spending Accounts, or Dependent Care Flexible Spending Accounts.

 

Topics: FSA, HSA, receipts, FSA Store, HSA Store, CBD, questions, Health Shopper, Substantiation, OTC

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