FSA Stored Value/Debit Cards

The IRS authorizes the use of a stored-value card/debit card with a Healthcare Flexible Spending Account. Tri-Star offers this FSA Debit Card as an option for employers. The card can be used to pay qualifying medical expenses.

The FSA Debit Card makes it fast and convenient for participants to access the money they set aside in their Healthcare FSA. When leaving a medical office visit, purchasing a prescription, or incurring a qualified medical expense, they simply use funds remaining in their Healthcare FSA, stored on the Card, to pay for the expense. In some specific cases they will not even have to follow up with documentation to Tri-Star.

The debit card will work only at the following providers:

  • Physicians, dentists, hospitals, clinics or other medical providers, or
  • Merchants who sell prescription drugs and/or over-the-counter medicines and supplies who have installed the IIAS control system.

Support for use of the debit card is electronically stored when using the card at a medical provider for a copay matching your employer’s health plan benefits (not that of your spouse’s policy through their employer) or if used at merchants with the IIAS system. In these electronically supported, auto-adjudicated claims, participants should not be asked by Tri-Star for follow up documentation. However, it is important that participants keep support for these expenses in case audited by the IRS.

Participants receive an email notice if documentation is required. They must respond to this request and support the use of the card or their card will be inactivated.

The value on the debit card stays in sync with the balance available in Tri-Star’s system. Whenever a participant files a claim for an expense, when not using the card, the card balance and the available balance with Tri-Star are reduced accordingly.

Stored-value cards associated with Healthcare FSAs can significantly reduce the paperwork filing requirements on participants. With the right health insurance plan design, they are a value-added service. Tri-Star will work with each employer to determine if this is a good solution for your Healthcare FSA.

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