Annual Benefit Amounts:(E)mployee Only: EE* Employee + (S)pouse: ES* Employee + (C)hildren: EC* (F)amily: F*
The government/IRS requires that all benefit payments (including card payments) be SUBSTANTIATED. This means the plan is required to know that each card transaction is a valid plan payment.
A valid plan payment is substantiated by providing a document that shows:
However, debit card transactions only tell us:
Because of this, the transactions details (or just the receipt) from the card is not good enough, and follow-up paperwork IS REQUIRED unless...
All other transactions will require paperwork follow up to be eligible. Further, we are required to temporarily block all cards who fail to follow up on such documentation, until it is resolved. Generally, if a card transaction is unresolved after 30 days, it will create a temporary block on the cards.
Because most medium to large chain pharmacies are agreeing to have a point-of-sale system that assures only eligible items are purchased, most Rx transactions will auto clear at any amount. They don't even have to match a co-pay.
However, for the few pharmacies that don't have such point-of-sale systems, a copay match will clear those transactions.
A participant has a benefit with plan year that runs from 1/1 to 12/31. The participant has $500 available on their benefit card.
On 6/23 of that year, they use their card at their Dentist to pay their $179 bill for a cleaning on their dependent child.
Unless $179 is a known co-pay match for a dental plan, that transaction will require documentation to be submitted. In general:
Establishing Your Settlement Account
In order to offer cards to your employees, you must first establish a "Settlement Account". This is basically a non-interest bearing bank account that your company establishes at Armstrong Bank, who is our card issuer. All employee card transactions will draw from this single, employer owned, central account.
These are debit cards, and thus funds must be in your account, or card swipes will fail for lack of funds. Generally, the goal is to fund the account at a level that will allow for expected card activity but not have too much extra cash just sitting in the account.
To try to meet this goal, we establish 2 parameters (which can be adjusted at any time), the MINIMUM BALANCE and the REPLENISHMENT AMOUNT. They work together to keep adequate funds in your SETTLEMENT ACCOUNT, while keeping your cash tied up to a minimum.
The Minimum Balance
This is the settlement account balance threshold, such that when transactions reduce your overall balance below this amount, it will automatically initiate a Replenishment Request. Typically, your minimum balance is set at around 10% of your overall collective employee benefit balances.
The Replenishment Amount
This is the dollar amount that is requested to be put back in, or "replenished" to your settlement account any time your account drops below the minimum balance. Note, the smaller the replenishment amount, the more frequent you will get replenishment requests. The larger the replenishment amount, the further above the minimum balance threshold you get, thus extending the time between replenishment requests.
Funding Your Settlement Account
The settlement account needs funds for cards to operate. So, how do we fund that account. We offer 3 methods, however the most common and recommended form is via an EFT from one of your general operating accounts.
An EFT allows for next (business) day replenishment of the account, thus supporting lower overall cash balances, while still maintaining enough funds to cover expected transactions. There is no charge for this method.
We also accept check or wire replenishments, however the check process takes much more time (at least a week) to replenish, and both the wire and the check processing carries a transaction fee.
In closing, this is an account you own, you will be able to see all bank activity via our secure website, and should you discontinue cards, the account will be closed and balance returned to you. A SETTLEMENT APPLICATION form will need to be returned to us to open your account.
Funding Your Employee’s HSAs
Funding your Employee’s Health Savings Account at HSAToday® is completely in your control. We can assist with the funding process. We offer EFT services and can debit (pull) directly from your company’s account at your instruction. Or you can push those funds via a Wire transfer or EFT to the HSA Custodian using your own Cash Management tools provided by your bank.
If your method of choice is to Wire or EFT using your own resources, then please call us at 888-665-1264 and we will supply the bank account information necessary to complete the wire transfer.
Important: There is a $15.00 Wire Fee for incoming wire transfers and your local bank may charge for outgoing wires. Consult your bank for more information.
COBRA Inital Notices
The COBRA Initial Notice is required to be sent to any active employee covered under one or more of your plans identified previously.
If you have been subject to COBRA and are transferring administration to us, or were administering yourself and now outsourcing to us, this notice should have been sent to your existing workforce.
If you are newly subject to COBRA, or are unsure that such notice has been previously sent, then you should strongly consider "blanketing" your current workforce with an initial notice. There is a one time charge of $2.50 per notice for this service.
We send such required notice to any new hires / newly covered persons as part of our standard monthly pricing, but this one time "catch-up" service has a one-time fee.
Once you click submit (below), this is what to expect: