Reimbursement Account Debit Cards

PAYFLEX FSA DEBIT CARD 

When you use your PayFlex Card, funds are automatically deducted from your spending account to pay for eligible expenses. Please remember PayFlex Cards will only be accepted at healthcare related merchants AND merchants who have implemented an inventory information approval system (IIAS), as required by the Internal Revenue Service. A listing of IIAS merchants that will be implementing this system is located at www.PayFlex.com.   

 

Please note, CIGNA’s mail order pharmacy Tel-Drug is IIAS Certified, however at this time PayFlex has not added Tel-Drug as a merchant to accept their debit card. While this implementation is scheduled to be completed shortly, you are currently unable to use your PayFlex debit card at this merchant.  However, you are still eligible to apply for reimbursement via paper claim to PayFlex or online through www.mypayflex.com .   University Benefits will continue to keep you updated when PayFlex updates their debit card merchant listing to include Tel-Drug.

 

Please review below Important IRS Changes Affecting your Payflex Card effective July 1, 2009 for additional information.

PayFlex Card Pointers

  • Your card will be activated when first used.
  • If you were enrolled in the HealthCare FSA for the 2008-09 plan year, you will not receive a new debit card.  The card will automatically be loaded with your new 2009-10 election.
  • Register with www.mypayflex.com to view your account and file claims.  You will need your Employer U ID#  (i.e., U00000000) and home zip code in order to begin registration.  Please visit the  Pace Portal to retreive your U# from your on-line pay advice.
  • Make sure to select "credit" when using your PayFlex card at authorized merchants.
  • You may use the card to pay for items or services up to the annual election amount regardless of how much you contributed to the HealthCare FSA account.        
  • View your card status at www.mypayflex.com via the Debit cards link on the left-hand navigation bar.  You may also order additional PayFlex Cards for your dependent(s) or spouse by clicking on the Card Order Link.
  • Keep your eligible purchases separate from other purchases you make at the same store.  Use an alternative form of payment for the ineligible purchases.
  • Please save your itemized receipts! Payflex may request documentation based upon IRS guidelines for transactions that do not match current co-pay amounts.  You will receive an e-mail directly from PayFlex to your Pace e-mail account when documentation is required.

IMPORTANT IRS CHANGES AFFECTING YOUR PAYFLEX CARD

Since January 1, 2008, the Internal Revenue Service (IRS) identified which merchants would be qualified to accept healthcare cards (such as the PayFlex Card). The IRS has since issued additional rules specifying where healthcare cards can be used.

As of July 1, 2009, the PayFlex card will only be accepted at:

  • Healthcare-related merchants, such as physician and dentist offices, vision care providers and hospitals.
  • Non-healthcare related merchants, such as grocery stores, discount stores, wholesale clubs, web-based merchants (i.e. drugstore.com) that use an IRS-approved inventory information approval system.
  • Drug stores and retail pharmacies that have implemented an IRS-approved inventory information approval system or satisfy the IRS’ 90 percent rule. The 90 percent rule means that 90 percent of the store’s income consists of eligible healthcare expenses. Please note that the decision to comply with the IRS’ requirements is made by the individual drug store or pharmacy.
  • All Walgreens locations will continue to accept the PayFlex Card due to implementing their own IRS approved proprietary system. Please note Walgreens will not be listed on the SIGIS merchant listings available online at PayFlex.com
  • In all cases, the merchant must accept MasterCard® in order for the PayFlex Card to work.

 

Check to see if you will still be able to use your PayFlex Card at your pharmacy or drug store by accessing the Listing of merchants with an IRS-approved IIAS and/ or listing of drug stores and pharmacies with either an IRS-approved IIAS or meet the IRS’ 90% rule on https://www.payflex.com/mypayflex/default.htm

Frequently Asked Questions:

1)       How does my PayFlex Card work at merchants who have implemented an IIAS?

When you swipe your card at one of the approved merchants, the IIAS will “approve” the items identified as healthcare related items at the point-of-sale. If you include non-eligible items (e.g., groceries) with your purchase, you will be asked to use another form of payment for those items.

 

2)       After July 1, 2009, which merchants will not accept my PayFlex Card?

  Merchants who have not implemented an IRS-approved inventory information approval system OR those who do not meet the IRS’ 90 percent rule will not accept your PayFlex Card. You can continue to purchase eligible healthcare items with another form of payment and submit a claim online via Express Claims for reimbursement from your PayFlex account.

 

3)       What if my card is no longer accepted at my drug store or pharmacy after July 1, 2009?

If your card is no longer being accepted based on the IRS regulations, you can still purchase and receive reimbursement for eligible healthcare items at these merchants. You will just need to use another form of payment and submit the itemized receipt along with a claim form to PayFlex. You can submit your claim online on the participant website via Express Claims.