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FSA Card FAQs

1. Are there any limitations on the usage of the card?

The FSA Card may be used in medical and dental offices, hospitals, health care clinics, pharmacies and online pharmacies who accept Visa to purchase the same eligible items and services for which you can submit paper-based claims for reimbursement.

2. Can I use the card to purchase over-the-counter medications?

You can use your card for all eligible expenses.

As of January 1, 2011, the eligibility rules for over-the-counter items have changed. Click here for more information.

3. Do I need to request a card when I elect to participate in an FSA?

No. You will automatically be issued a card when you enroll in the Plan. However, you may choose between using your FSA Card or filing paper-based claims. If a merchant selling eligible items or services does not accept the FSA Card, you may pay for the eligible expense out-of-pocket and submit a claim for reimbursement from your FSA.

4. How does the FSA Card work?

You swipe the card at the health care provider like you do any other credit or debit card. When you incur an Eligible Medical Expense at a doctor's office or pharmacy, such as a co-payment or prescription drug expense, you swipe the card at the provider's office much like you would a typical credit or debit card. The provider is paid for the expense up to the maximum reimbursement amount available under the Health FSA (or as otherwise limited by the Program) at that time you swipe the card. Every time you swipe the card, you certify to the Plan that the expense for which payment under the Health FSA is being made is an Eligible Medical Expense and that you have not been reimbursed from any other source nor will you seek reimbursement from another source. You must retain receipts for up to one year following the close of the Plan year in which the expense is incurred. Even though payment is made under the card arrangement, you may be requested to substantiate the expense. If so, ADP will send you a letter requesting that you submit a receipt within 45 days.

5. Why substantiate?

The IRS has provided strict requirements stating that purchases be substantiated using itemized receipts when they cannot be otherwise substantiated per the regulations. ADP is able to automatically substantiate about 75% of purchases and requests that customers substantiate the remaining 25% with itemized receipts. ADP has one of the highest automatic substantiation rates in the industry and continuously works to increase this rate in order to make FSA card use a simple process.

6. How do I substantiate?

Substantiation of a card purchase means to supply a receipt(s) that clearly shows an eligible item(s) or service(s) was purchased using the FSA Card. For each card purchase that you have been asked to substantiate:

  • Complete a Substantiation Form
  • Attach itemized receipt(s)
  • Send to ADP the Form and the receipt(s)

The Substantiation Form must be completed entirely and signed. The receipt must state the vendor name, vendor contact information, the purchase date, a description of each expense and the expense amount. A credit card receipt is usually not adequate documentation. Credit card receipts often do not list the individual items purchased along with a description of the item. This is why you must save your purchase receipts when using the card.

If you purchased an ineligible item or service, please read the "Ineligible Expenses" section of these instructions. If you have lost your receipt(s), you must respond to the substantiation request and check “No Receipt is Available” on the Substantiation Form. Retain photocopies of everything you submit, complete one Substantiation Form per purchase and send these documents to ADP. Please fax (fastest process) OR mail the documents (keep a copy) but please DO NOT DO BOTH.

Fax: 866-392-4090 (toll free) or 678-762-5900

Place the documents in this order: Substantiation Form first, then the receipt(s). Please do not return the instruction pages with your Form and receipts.

OR

Mail: ADP FSA Substantiation, P.O. Box 1853, Alpharetta, GA 30023-1853

You must retain receipts for one year following the close of the Plan year in which the expense is incurred.

7. If I had an FSA Card for last year's FSA, should I keep it for next year?

The FSA Card has a 3-year lifetime. This means that you will retain the same card for a period of three years. As long as you continue to re-enroll each plan year, your card will remain active for the 3-year period. The card will expire after the last day of the month indicated on the front of your card. If you are still active in the plan when your card expires, you will automatically receive a new card prior to the expiration date.

8. If I terminate employment, can I continue to use the card?

The card will be turned off when employment or coverage terminates. The card will be turned off when you terminate employment or coverage under the Plan. You may not use the card during any applicable COBRA continuation coverage period.

9. Is the FSA Card process paperless?

No. The primary value of your FSA Card is to allow you to avoid paying for eligible expenses out-of-pocket, and then submitting a claim for reimbursement. However, because of the special tax status of your FSA contributions, IRS regulations will often require you to submit the receipt for your purchase after the fact as proof of the eligibility of the expense.

10. Must I use the card for all expenses I incur?

You may choose between using your FSA Card or filing paper-based claims. Should a merchant selling eligible items or services not accept the FSA Card, you will remain able to pay for the eligible expense out-of-pocket and submit a claim for reimbursement from your FSA.

11. What are the advantages of the FSA Card?

The primary value of your FSA Card is to allow you to avoid paying for eligible expenses out-of-pocket, and then submitting a claim for reimbursement. However, because of the special tax status of your FSA contributions, IRS regulations will often require you to submit the receipt for your purchase after the fact as proof of the eligibility of the expense.

12. What happens if I accidentally use the card for ineligible or non-qualifying expenses?

If you use the Card for an expense that is ineligible, or if ADP determines that an expense paid for using the Card was ineligible, ADP will request that you offset this ineligible expense with a new, eligible paper claim of the same or greater amount. You will not receive a reimbursement for this new claim. It will be used to offset the payment of the ineligible Card transaction. This process will avoid the need for you to reimburse your account for those funds. The list of eligible health care items is updated frequently by the Internal Revenue Service. If you are uncertain about whether or not an item or service qualifies for reimbursement, you should determine expense eligibility before making the purchase.

13. What happens if I forget to reply to the request for additional documentation?

If you fail to respond to a substantiation request in a timely manner, your card will be temporarily suspended until such time as you do respond to the request or you repay the amount of the unsubstantiated transaction to your account. During this time, you can still submit paper claims as you would if you did not have a card. We will allocate portions of your paper claims against the unsubstantiated amount and reactivate your card once the full, unsubstantiated amount has been recovered.

14. What is the FSA Card?

The FSA Card is an additional convenience offered by your Flexible Spending Account (FSA). The Card is a useful and easy-to-use tool that allows you to access funds from your FSA with a simple swipe at a merchant payment terminal. By using the Card to purchase eligible expenses, you avoid paying for a purchase with money out of your pocket.

15. What should I do if my card is declined?

Be prepared with an alternative form of payment, for example cash, personal check, credit card, when attempting to make a purchase with your FSA Card. Some merchants that sell eligible items and services are not recognized as qualified merchants, per IRS regulation, by the credit card processing system. In these cases, you can simply pay for the eligible item or service using another payment method and submit a paper-based claim for reimbursement. If your card is declined, you will remain able to pay for the eligible expense out-of-pocket and submit a claim for reimbursement from your FSA.

16. What type of additional documentation is required?

Each time you swipe the card, you must obtain a receipt or invoice that includes the following information:

  • The nature of the expense (e.g. what type of service or treatment was provided). If the expense is for an over-the-counter drug, the written statement must indicate the name of the drug.
  • The date the expense was incurred
  • The amount of the expense

17. Will I get a request for documentation for every card transaction?

Card transactions will be automatically substantiated more often when the card is used at businesses that primarily or exclusively provide eligible healthcare services and sell eligible items. Doctor's and dentist's offices, pharmacies and hospitals are such businesses. If you have been asked to substantiate a purchase by providing an itemized receipt and you will be making this same purchase for the same amount at the same business repeatedly, then the expense will likely be automatically substantiated in the future. The ADP claims processing system is "smart" and "remembers" your historical eligible purchases, including those you have substantiated in the past.

Only those items that we cannot automatically determine as eligible expenses will require additional substantiation documentation.

The following purchases will often not require additional substantiation documentation:

  • Purchases made at doctor's or dentist's offices that match your insurance plan's co-payments
  • Prescription purchases that match your insurance plan's co-payments
  • A recurring expense (same store, same amount) that you have already substantiated (e.g. for refillable prescriptions)

The following purchases will likely require additional substantiation documentation:

  • Purchases made at a drug store or grocery store (both eligible and ineligible items are available for purchase at these retailers)
  • Purchases that do not match a co-payment for your insurance plan

18. Will I receive a cardholder agreement?

Yes. You will receive a cardholder agreement upon enrollment. You must agree to abide by the terms and conditions of the Program as set forth herein and in the Electronic Payment Cardholder Agreement (the “Cardholder Agreement”). The card will be turned off effective the first day of each Plan year if you do not affirmatively agree to abide by the terms of the Program during the preceding Annual Election Period.