We believe that flexible spending accounts (FSAs) and health reimbursement accounts (HRAs) will continue to grow in the face of Health Care Reform, especially when "the pay or play" mandate kicks in beginning in 2014. Aside from legislation expected to reverse FSAs back to their pre-reform status, FSAs and HRAs are sure to remain popular because they are a great vehicle for employees to pay for medical services and supplies on a tax-free basis. Covered persons stay informed and in control of their health care dollars with these accounts.
Physicians Care Provides Debit Cards for CDHPs
The Physicians Care debit card makes accessing FSA or HRA funds as easy for employees as using their checking account. One debit card can provide access to either of these accounts, and our card is accepted at any medical office, pharmacy or other qualified merchant that participates in the MasterCard® network.
To use the debit card, a covered person swipes the card to pay for eligible health or dependent care expenses. Payments will be processed if the cardholder has active status and adequate funds in his or her account and if the merchant is qualified.
Employers can offer an FSA and an HRA plan to their employees, but they must follow IRS guidance on the order of payment between these two plans. Physicians Care can assist employers with this coordination. For more information on our debit card, contact your agent or Physicians Care today.