| HRA Plus card is programmed to
be accepted only at qualified merchants relating to healthcare e.g. hospitals, doctor's offices, pharmacies, opticians, where eligible purchases can be made. This limitation substantially
ensures that the card will not be used other than for qualified plan expenses.
The Flex debit card system can be used with any IRS-qualified benefits account paying with pre-tax dollars, including: HSA Section 106 Our online payment and accounting technology, instant eligibility, and expense tracking provides a flexible and simple solution for any HRA plan design. Enrollment and administration can be done within 30 days. The Flex Convenience debit card enables employees to only pay for eligible expenses wherever MasterCard® is accepted—from physician and dental offices to pharmacies and vision service locations. Once a cardholder swipes the card at an eligible merchant location, the system preliminarily screens the transaction. It determines whether there are sufficient funds credited to the Administrator account (if the Administrator maintains a separate account), than the employer account, and finally the employee coverage amount. If there are sufficient funds in the account, the transaction is approved. The merchant is paid from the employer’s "advance account." The employee’s coverage amount is debited to reflect payment of an approved expense. There is no direct payment or reimbursement to the participant. |
| In instances where the plan administrator may find an expense to be questionable, a hold is placed on the employee’s coverage amount until the administrator deems the expense to be a permissible expense pursuant to IRC section 213 and plan benefits. The administrator reviews the transaction amount, merchant type, merchant name and the date of charge. The transaction is treated as conditional or "paid but pending" until the administrator confirms that the services qualify for payment. The administrator can either approve or deny the transaction. In the event the administrator is not able to make a determination as to the eligibility of the claim, the administrator has the option of “pending” the transaction and requesting additional information from the cardholder. If the transaction is deemed ineligible, the employee is responsible for reimbursement of funds. In the event the cardholder does not respond to the request for reimbursement, the plan administrator has the ability to stop further card usage by electronic cancellation. |
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TERMS OF USE: The Flex debit card is not eligible for use at ATM's or other unqualified merchant locations. The card will be denied at the point-of-sale when use is attempted with an ineligible merchant. |