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Frequently Asked Questions
FSA Debit Card
The following Q & A is intended to address questions regarding the new FSA Debit card that will be available during plan year 2010 to employees who enroll in a Health Care FSA (Dependent Care FSA not applicable):
Am I required to have an FSA debit card if I enroll in an FSA for 2010?
No, the new FSA debit card is strictly a voluntary option for those enrolling in a Health Care FSA.
Do I have to elect the debit card at the beginning of the year or can I sign up for it at a later date?
No, you may sign up for the debit card at any time. You will simply be charged a pro-rated fee for the remaining portion of the year.
What are some of the advantages of having an FSA debit card?
One of the main advantages of having an FSA debit card is convenience. Assuming your pharmacy is set up with the necessary IIAS (Inventory Information Approval System), you can pay for your prescription(s) and other eligible FSA expenses by simply swiping your FSA debit card. Also, your FSA debit card will work at the doctor's office and hospital, as long as credit cards are accepted. (Note: As of July 1st, 2009 IRS regulations require all pharmacies to have the IIAS system in place).
What are some of the disadvantages of having an FSA debit card?
One of the main disadvantages is that using the debit card does not eliminate the need to keep your receipts. You will still need to keep your receipts during the plan year in case some of your expenses are not able to be substantiated. An example of this is if your spouse has their own insurance plan with a co-pay amount that is different than yours. ASI will require documentation for that purchase so they can enter it into their system. Once your spouse's co-pay amount is entered, documentation related to that particular co-pay will not be required again. Another example is if your purchase requires a note from your doctor (ex. vitamins), you will be required to provide follow-up documentation in this situation.
Is there any additional cost to me, as an FSA participant, for having an FSA debit card?
Yes, there is a $1.00 per month fee for those who elect an FSA debit card. However, this fee will be deducted all at once from the participant's Health Care FSA account at the beginning of the plan year or effective date for those enrolling mid-year. For example, those enrolling effective January 1st will have $12.00 deducted from their Health Care FSA account. For someone enrolling effective July 1st, $6.00 will be deducted from their account. Please note: This fee is non-refundable, so if a participant leaves employment prior to the end of the year, they will not receive a refund for the remaining pre-paid fees.
Where can I use my new FSA debit card?
You may use your FSA debit card any place that has the IIAS system or that has a Health Care Merchant Category Code (MCC), such as a hospital, doctor, dentist, optometrist, chiropractor, etc. For a more complete list of stores, log onto www.asiflex.com/debitcards. (Note: As of July 1st, 2009 IRS regulations require all pharmacies to have the IIAS system in place).
Where can't I use my new FSA debit card?
Your new FSA debit card will not work at places that do not have an IIAS system in place or places that do not accept credit cards. Likewise, if you have a medical condition that allows you to claim expenses that are not normally eligible, you will not be able to use your FSA debit card. You will have to pay full price with another form of payment and submit a manual claim with supporting documentation.
How many FSA debit cards will I receive?
You will receive two debit cards. Both cards will have the FSA participants name on them.
Do I still need to keep my receipts if I choose to have an FSA debit card?
If your FSA transaction can be electronically substantiated, then no, you will not need to keep your receipt. If your FSA transaction cannot be electronically substantiated, then yes, you will need to keep your receipt. This is because you will receive a request for supporting documentation from ASI.
Is there a cost to obtain a replacement card if mine becomes lost or stolen?
Yes. There is a fee of $5.00 per replacement card. This fee is not charged by the State of Kansas or ASI but is a pass through charge from the company that makes the debit card. Replacement cards can be obtained by e-mailing ASI at asi@asiflex.com.
Can I use my FSA debit card to pay for expenses under my Dependent Daycare FSA?
No, the debit card may only be used to pay for health expenses incurred under your Health Care FSA.
Can I use my new debit card to spend down my FSA balance from the previous year during the grace period?
No, the debit card may only be used to purchase items with current-year funds. In order to use previous year funds you will need to complete a paper claim form and instruct ASI to use remaining funds from the previous year for the claims submitted.