FSA Debit Card

Use the FSA Debit Card to Pay for out-of-pocket medical expenses:

The FSA Debit Card provides a convenient method to pay for out-of-pocket medical expenses for you, your spouse and/or any tax dependents. The IRS has created very stringent rules for using the card and even when you use the card at a valid healthcare provider; it may or may not eliminate the need for follow up documentation. Please read the information below to understand when you will need to provide follow up documentation, as well as a number of frequently asked questions regarding FSA Debit Card use.

Where can the cards be used?

Per IRS regulations, the FSA Debit Card is restricted to use 1) at health care providers (based upon the Merchant Category Code of the provider) and 2) at grocery, retail stores and pharmacies that have implemented what is known as an Inventory Information Approval System (IIAS) or have certified that 90% of its cash register receipts in the previous calendar year were for FSA eligible expenses.

Transactions at any other merchant types will be declined at the point-of-sale, even if you are paying for eligible expenses. Below is a more detailed explanation of the allowed merchant types.

Health Care Merchant Category Code (MCC): Every merchant that accepts credit cards has an MCC, which is a general category that is assigned when the merchant applies for the right to accept credit cards. The FSA debit card will work to pay providers that have an MCC that indicates the merchant is a health care provider (hospital, doctor, dentist, optometrist, chiropractor, etc.). If you use your FSA debit card at any of these locations, and have sufficient funds available, your transaction will be approved. However, depending upon what you pay for, you may have to submit an itemized statement of services that details what was paid for with the card.

Inventory Information Approval System Restriction: The IRS also allows a card to be used at retail and grocery stores that have an Inventory Information Approval System (IIAS) in place that only allows FSA-eligible items to be paid for with your FSA debit card. The card will work at these stores, even if the MCC does not indicate it is a health care provider. Almost all chain stores have implemented this system, but please review the complete list of stores for more information. If you go to the cash register at one of these locations and swipe your Benny Card for a container of aspirin, a prescription and a six pack of cola at one time, the card will pay for the aspirin and the prescription, and you will be prompted to provide a separate form of payment for the cola. Purchases at these stores will never prompt a request for follow up documentation.

90% Certification Rule:This applies to standalone pharmacies and drugstores, or pharmacies and drugstores inside a hospital, health clinic or grocery store that have a separate MCC for credit card transactions. In order for the card transactions to be approved at these locations, each individual store must certify that 90% of its cash register receipts for the previous calendar year were FSA eligible expenses. Card transactions will be approved at these stores, but follow up documentation will be requested for any purchase that does not match a co-payment for your prescription drug plan or is not a recurring expense that has been substantiated one time with a paper claim. Many independent pharmacies and drugstores have implemented this system, but please review the complete list of stores for more information.

When do I have to turn in paperwork?

Certain situations will allow FSA debit card transactions to be electronically substantiated, meaning that no follow-up documentation will be required. If a transaction cannot be electronically substantiated, you will receive a request from ASIFlex for an itemized statement of services.

Benny Card purchases are considered to be electronically substantiated if they:

Exactly match a co-payment, or any combination of co-payments up to five times the highest, for the health, vision and/or dental plan(s) that you have elected through your State of Kansas health, vision or dental plan(s);

Occur at a retail outlet that has implemented IIAS;

Are recurring expenses for the exact same amount at the same provider and have been substantiated once via a paper claim. An example of this is if you go see a chiropractor once a month and you are assessed a fee of $23.11 for each visit. This amount does not match a co-payment, so you will be prompted for documentation the first time. When you submit your documentation, please include a note stating that this is a recurring expense. Future transactions at the same provider, for the same amount, will not require follow-up documentation; or

Are substantiated through a regular file feed from your applicable Health Vendor (BC/BS, Coventry, PHS, UHC-UMR), Delta Dental of Kansas, or Superior Vision. In order for these files to eliminate the need for follow up documentation, your purchase must exactly match the amount for a combination of your deductible or co-insurance.

All other transactions will prompt a request for a detailed statement of services. You are not required to submit this documentation each time you get a request. Many ASIFlex participants gather up their statements, and simply submit these items on a monthly basis.