With the ever increasing combinations that can be made between health benefit options, employers can help employees get the biggest bang for their buck by offering several pre-tax options at once. To help keep things straight for them, employers should make an effort to partner with an administrator that can offer a flex debit card with “stacking options” or logic to know what expenses are drawn from which account when. myCafeteriaPlan is happy to offer such a benefits flex debit card and can easily implement a system that makes sense for any client.
Our card solution also offer multi-account stacking, which is the ability to access more than one account on the same card and draw funds from the appropriate account(s) at the point of sale. We offer one of the most comprehensive stacked card features offered in the industry today.
Our benefits flex debit card capabilities include:
- Flexible Spending Accounts (Health Care and Dependent Day Care)
- Health Reimbursement Arrangements
- Health Savings Accounts
- FSA grace period
- Conversion of limited FSA to full FSA when the HDHP deductible is satisfied
- Qualified Parking and Transit benefits (pre- and post-tax purses)
- Incentive/reward purses
Not up to speed on some of the HSA combination restrictions? Here is a short bit on options from the IRS. For more information you can visit the full IRS article at http://www.irs.gov/publications/p969/ar02.html.
An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements.
- Limited-purpose health FSA or HRA. These arrangements can pay or reimburse the items listed earlier under Other health coverage, except long-term care. Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible.
- Suspended HRA. Before the beginning of an HRA coverage period, you can elect to suspend the HRA. The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. When the suspension period ends, you are no longer eligible to make contributions to an HSA.
- Post-deductible health FSA or HRA. These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met.
- Retirement HRA. This arrangement pays or reimburses only those medical expenses incurred after retirement. After retirement you are no longer eligible to make contributions to an HSA.