TexFlex offers the PayFlex Debit Card
If you don't want to pay up front and wait for reimbursement, you can use the PayFlexTM Debit Card to pay for the expense directly from your TexFlex account. You can use the card at merchants who have an inventory system approved by the IRS. The debit card is accepted at healthcare-related merchants such as doctor and dentist offices; hospitals, vision care providers and pharmacies. You can also use the card at retail merchants, such as grocery stores, discount stores, and wholesale clubs who have implemented an inventory information approval system (IIAS).
How does the debit card work?
The debit card is "loaded" with the entire annual amount of your health care spending account contribution on September 1. If you pledge $100 per month to your FSA-Health account, you will have access to the full $1,200 (minus fees) in September to use immediately to pay health care expenses. It's like an interest-free loan to pay your out-of-pocket health care costs.
Many TexFlex participants get debit cards for their family members to use throughout the year to pay for health care expenses. This is particularly helpful if your son or daughter is away from home attending college.
With the TexFlex FSA-Health, you will have access to the entire amount you pledge for the plan year on September 1.
Will I receive a new PayFlexTM Debit Card for Plan Year 2010?
Please check the expiration date on the front of your PayFlexTM Debit Card. If your card has an expiration date of 08/09, it will be valid through August 31, 2009. PayFlex will issue new cards for you and your dependents the first of August. Your new PayFlexTM Debit Card(s) will arrive in a plain white envelope in mid August.
If your card is not scheduled to expire in 2009, do not destroy the card. If you elect to continue the card for PY 2010, that card will continue to be active through the expiration date indicated on the card.
Once you have received the new PayFlexTM Debit Card, please destroy the old card.
List of approved merchants
Beginning July 1, 2009, stores with the Drug Store and Pharmacies merchant category codes must implement an inventory information approval system (IIAS) or satisfy the 90 percent rule, in order for your card to work. The 90 percent rule means that 90 percent of the store's income consists of eligible healthcare expenses. Cards will not work at pharmacies who have not implemented IIAS. View a list of pharmacies that have implemented IIAS.
Most pharmacies have already implemented IIAS, such as HEB and Wal-Mart. To view a listing of retail merchants that have or will implement an IRS-approved IIAS or are 90 percent certified, view a list of merchants accepting the PayFlex Card. More information on this regulation is available on the TexFlex website.
Debit Card Fee
The card is optional and has an annual fee of $15. If you elect the debit card, you will pay only one $15 charge, even if you participate in both accounts. The $15 fee pays for as many debit cards as you need for your eligible family members. The debit card fee is a SEPARATE charge from the $24 administrative fee.
Administrative and debit card fees together
If you enroll in one TexFlex account (FSA-Health or FSA-Day Care) for the full plan year, and you also elect the debit card, a total of $39 is reduced from your FSA account balance during the first month of participation ($24 admin fee + $15 debit card fee = $39)
If you enroll in both TexFlex accounts (FSA-Health and FSA-Day Care) for the full plan year, and you also elect the debit card, the debit card fee is reduced from your FSA-Health account balance along with the administrative fee. This means that during the first month of participation, $39 is reduced from the FSA-Health account balance. The FSA-Day Care account balance is reduced only by the $24 administrative fee if you are enrolled in both FSAs.
If you enroll during the plan year, the administrative and debit card fees are prorated as described above.
