Frequently Asked Questions:
    Healthcare Payment Card

Card Basics
Why did I receive this card?
How do I activate my card?
Is this a regular credit card?
What can I purchase with my card?
Where can I use my Healthcare Payment Card?
How does the card work?
What are the benefits of the card?

Submitting Receipts
Do I still need to keep my receipts?
How will I know if I need to submit a receipt for substantiation?
What if I don’t submit my receipts?
Will the card know which expenses are eligible and which are not?
What happens if I use the card for an ineligible expense?

Using The Card
What happens if I’m at a legitimate provider and my Healthcare Payment Card doesn’t work?
What are some reasons my card may be denied?
Can the Healthcare Payment Card identify how much will be paid by my health plan for the product or service?
I used my payment card at the doctor’s office, a qualified merchant, but you still requested receipts – why?
I used my payment card at the dentist’s office, a qualified merchant, but you still requested receipts – why?
Can I use my Healthcare Payment Card to pay for services incurred in the previous plan year?
What if my provider doesn’t have a charge card terminal?
How do I pay for dependent care expenses?

Making Card Changes
Can I order an additional card for my spouse or dependent?
What should I do if my card is lost or stolen?
What happens if I terminate employment or otherwise become ineligible for the plan?

Why did I receive this card?(Back to top)
The healthcare payment card is offered as an enhancement to your benefits package. It provides a convenient way to access your account funds and pay for qualified medical expenses quickly, easily and with almost no paperwork.

How do I activate my card?(Back to top)
Your card will be automatically activated the first time you use it. When paying for eligible expenses, simply swipe the card anywhere your card type (example: Visa) is accepted; no personal identification number (PIN) is needed.

Is this a regular credit card?(Back to top)
No, the healthcare payment card is a stored value restricted use card to access funds from your healthcare and/or dependent care accounts. It is provided to give you quick access to the funds in your account and should only be used at eligible locations for qualified plan expenses.

What can I purchase with my card?(Back to top)
Health account funds are mandated by the IRS to be used for healthcare expenditures only, but there are literally thousands of products and services that meet the approved healthcare expenditures requirements in Section 213(d) Medical Expenses as defined in the IRS code. Depending on your account, these expenses may include deductibles, coinsurance,copays, prescription drugs, over-the-counter treatments, vision care and dental care. Refer to Health Savings Account FAQs, Health Reimbursement Arrangement FAQs, and Flexible Spending Account FAQs to determine what is approved for your accounts.

Where can I use my healthcare payment card? (Back to top)
Your Healthcare Payment Card can be used nationwide at a qualified service provider that accepts your card type (Visa or MasterCard, etc.). The card is programmed to work only at merchant locations that are designated as healthcare merchants based on their Merchant Category Code (MCC). Examples of qualified merchants include pharmacies, doctor and dentist offices, vision centers and hospitals.

Beginning 1/1/08, your healthcare payment card will only be accepted at supermarkets, grocery stores, department stores and wholesale clubs that comply with an IRS-required inventory control regulations, called IIAS (Inventory Information Approval System). IIAS compliant stores automatically check to ensure items purchased with a healthcare payment card are qualified healthcare account expenses, reducing the need to submit receipts or worry about rejected claims.

• For a list of Retailers Accepting healthcare payment cards, see www.connectyourcare.com/stores.
• Pharmacies will continue to accept healthcare payment cards until 1/1/09. After this date, pharmacies will also be required to comply with IIAS in order to continue to accept healthcare payment cards.
• Doctor and dentist offices, vision centers and hospitals will continue to accept healthcare payment cards with no requirement to comply with IIAS.

How does the card work? (Back to top)
Provide your card to a qualified merchant or provider, and they will swipe your card like any other credit card to pay for your purchase. You must select "credit" if offered the choice between credit and debit during the transaction. If you are asked for a personal identification number (PIN), ask the merchant to process it as a credit card since no PIN is assigned. Funds for eligible expenses will be transferred directly to the provider or merchant from your healthcare and/or dependent care account. Please ask for an itemized receipt in case it is required for substantiation. An itemized receipt should include the date of service, name and address of the provider, the cost and description of the service provided.

What are the benefits of the card?(Back to top)
The main benefit of the healthcare payment card is convenience. It allows you immediate access to your Flexible Spending Account (FSA), Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA) funds. Rather than paying out-of-pocket for qualified expenses, filing a claim and then waiting for reimbursement, using the card will allow you to access your funds directly and pay the provider. While you may still need to fax in receipts for substantiation purposes, you will not have to wait for your money to be reimbursed to you.

Another benefit is that when you swipe the card, a claim is created for you and eliminates the need for you to fill out a claim form online or manually by paper. When our claims system recognizes a card swipe, it also automatically sends a reminder about receipts. You can use that reminder as the claim fax cover sheet, attach your receipts and fax to the claims department. If you use another form of payment, it will be up to you to remember to send the receipts and file the claim.

An additional benefit is that some payment card purchases can be auto-substantiated without your receipts. Examples of transactions that should not require receipts include:

1. Copayments that match your employer’s group health insurance plan;
2. Copayments that match your employer’s group pharmacy benefit;
3. Recurring expenses of the same dollar amount and same locationthat have been previously substantiated;
4. Purchases made at certain supermarkets, grocery stores, department stores and wholesale clubs that automatically provide sustantiation through an inventory control system.
   
   

Do I still need to keep my receipts?(Back to top)
YES! Third party documentation is required any time you use your payment card or request reimbursement except for the instances listed above. Therefore, always hold on to your receipt* in case further documentation is requested. The receipt must contain the following information:

• Date of service;
• Name and address of service provider or merchant;
• Description of the service or expense provided; and,
• Amount charged.

*Please note that non-itemized cash register tapes, credit card receipts and cancelled checks alone do not provide proper substantiation.

How will I know if I need to submit a receipt for substantiation?(Back to top)
If a receipt is needed, you will be notified by email or letter within a week of your payment card swipe. You can also review if your claim requires receipts online by logging into your account and visiting the Claim Center. You need to submit receipts if you see a notice.

What if I don’t submit my receipts?(Back to top)
You must provide the receipts within the time requested or the transaction will be deemed ineligible, and you will be required to refund the amount of the transaction. If you fail to submit required receipts within 45 days, your payment card will be deactivated. If you fail to reimburse the account, the amount of the ineligible expense(s) may be withheld from your pay or added to your W-2. Under current regulations, we do not need receipts for HSA transactions. However, the IRS may require you to present receipts to verify your tax return, so hold on to these receipts as well.

Will the card know which expenses are eligible and which are not? (Back to top)
While the card can identify a healthcare location based on the Merchant Category Code, it can not identify the items or services purchased. That is why in some instances, you will be required to send in documentation to verify that the card was used to pay for an eligible expense. Always save your receipts!

What happens if I use the card for an ineligible expense? (Back to top)
For most types of accounts, such as Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs), if you use the card for an ineligible expense, you will be required to reimburse your account for that transaction. If you used a Health Savings Account (HSA) to pay for an ineligible expense, you may be required to pay income taxes and an additional penalty tax.

What happens if I’m at a legitimate provider and my healthcare payment card doesn’t work?(Back to top)
You should first check to ensure that the provider swiped your card as a "credit" transaction. If the card still does not work, pay for the charge another way and contact Customer Service afterwards to determine the reason for the denial. You can go online to request reimbursement for any eligible expenses in which the card was not used.

What are some reasons my card may be denied? (Back to top)
The IRS has set up rules regarding when payment cards can be used. The healthcare payment card utilizes the merchant code of the provider to determine if the location typically sells or dispenses legitimate healthcare expenses. Valid locations include pharmacies,doctor’s offices and hospitals. If the card is not approved, then the provider is either not a qualified merchant or they have not properly set-up their merchant code.

Your card will also be denied if the amount requested from your card is more than your available balance. You can check your available balance online or by calling Customer Service. If your balance is less than the cost of the service or expense, you can ask the merchant to swipe the card for the available amount and then use another form of payment to pay the difference.

Can the healthcare payment card identify how much will be paid by my health plan for the product or service? (Back to top)
No, you still need to submit your expense through your regular claims procedure used by your health plan to determine what your share of the cost will be. If it’s not a simple copayment, you should wait for the claim to go through your insurance company and you receive your Explanation of Benefits (EOB) showing your financial responsibility. You should only charge the amount that your insurance company doesn’t cover. Copays can usually be paid with the healthcare payment card at the point-of-service.

I used my payment card at the doctor’s office, a qualified merchant, but you still requested receipts- why? (Back to top)
While most procedures performed in a doctor’s office are eligible expenses, some procedures are not. For instance, some doctors sell nutritional supplements and vitamins which are not eligible. Therefore,the IRS requires that we receive documentation to identify the service performed is an eligible expense.

I used my payment card at the dentist’s office, a qualified merchant, but you still requested receipts- why? (Back to top)
While most procedures performed in a dentist’s office are eligible expenses, some services such as teeth whitening are not. Therefore, the IRS requires that we receive documentation to identify the service performed is an eligible expense.

Can I use my healthcare payment card to pay for services incurred in the previous plan year? (Back to top)
No. If the current plan year has expired, you should file claims manually. A card transaction is processed with an assumed date of service equal to the date of the card swipe; therefore it would pull money from the current plan year instead of the previous plan year. Keep this in mind if you incur services or expenses towards the end of a plan year and are waiting for the EOB from your insurance company.

What if my provider doesn’t have a charge card terminal? (Back to top)
You can still use funds from your account. However, you will have to pay with another form of payment and then submit a request for reimbursement.

How do I pay for dependent care expenses? (Back to top)

Unfortunately, you may not use your card at dependent care locations. If you enrolled in a Dependent Care FSA, you may pay for qualified dependent care expenses out of pocket, then enter a reimbursement request online and submit your itemized receipts. Itemized receipts must be provided to substantiate dependent care expenses in compliance with IRS guidelines. Receipts must contain the following information:

• Date of service
• Name and address of provider
• Description of the service provided
• Amount charged
• Name of the dependent

Please note, non-itemized cash register tapes, credit card receipts and cancelled checks alone do not provide proper substantiation.

Can I order an additional card for my spouse or dependent? (Back to top)
Yes. You can order an additional card through your online account by clicking "Payment Card" in the Quick Links section on the Home Page. Or, contact Customer Service to request a card. There may be a small fee for an additional card.

What should I do if my card is lost or stolen? (Back to top)
You should contact Customer Service immediately. There may be a small fee to replace a lost/stolen card.

What happens if I terminate employment or otherwise become ineligible for the plan?(Back to top)
You are no longer eligible to use the card under that plan. It will be made inactive and should be returned to your HR Administrator. However, you may still remain a valued customer. Contact Customer Service for more information.