Healthcare Flexible Spending Account
If you’re looking for frequently asked questions, how-to videos, and tips for managing your Healthcare Flexible Spending Account, also known as an HCFSA or Healthcare FSA, you’ve come to the right place.
Healthcare FSA FAQs
Why do I have to submit receipts for every HCFSA claim?
The Internal Revenue Code (IRC) regulations have requirements stating that expenses must be substantiated using itemized receipts, third party statements, or an Explanation of Benefits. To comply with IRC guidelines, we request documentation of your expense to verify the eligibility of the purchase.
How do I submit documentation to an existing HCFSA claim?
- Log in to your online account or AFmobile
- Select the Additional Documentation button
- Select either Reimbursement Account(s) or Insurance Claim
- For Reimbursement Accounts, select the pending transaction and click Add Receipt to upload documentation.
- For Insurance Claims, select the insurance policy from the dropdown, then upload your documentation.
What information does a claim documentation or receipt need to include?
Your documentation should include:
- Itemized receipts for an expense
- Original date of service
- Description of service rendered or expense
- Charges for the service or expense
- Provider of the service or expense
- Recipient of the service or expense
Why did I receive a “request for documentation” letter in the mail?
You will receive a request for documentation via mail if you used your Benefits Debit Card to make a Healthcare FSA purchase, or if you submitted an out of pocket reimbursement claim without a receipt. You also may receive this letter if the documentation you submitted wasn’t sufficient.
These letters are sent the day after a purchase is made or when the claim is reviewed and determined to be missing documentation or containing insufficient information. So, when receiving this letter, you may have already submitted the necessary documents.
Why did I receive an “ineligible” or “insufficient documentation” letter, and what should I do now?
You will receive this letter if your Benefits Debit Card was used for an expense incurred outside the plan year, an ineligible expense, or if the documentation you submitted was insufficient.
When the documentation cannot be provided or the expense is ineligible, you have three options:
- Submit a different itemized receipt to offset the transaction amount.
- Contact American Fidelity to make a credit card payment.
- Submit a check in the amount of the transaction to be applied to your Healthcare FSA account.
How do I access my HCFSA online?
If you already have an American Fidelity online account, simply log in to your account to view your HCFSA information.
If you have not created an account, click here to register now. Then, follow the prompts to complete the registration process. You will use this same registration information on the mobile app, AFmobile®.
How much can I contribute to my HCFSA?
The 2020 maximum allowed by law to contribute pre-tax into this account is $2,750 per plan year. Please note, this amount may be further limited by your employer.
What happens to unused money in my account?
HCFSAs are “use or lose” accounts. This means, at the end of your plan year, the funds remaining in your account may be forfeited and returned to your employer's plan. Learn what employers can do with unused HCFSA funds
If your employer has elected a carryover provision, you may be able to carry over up to $550 of unused HCFSA contributions to the next plan year.
If your employer has elected a grace period, you will have 2.5 months following the end of your plan year to incur HCFSA claims for the previous plan year’s account balance.
Your plan also includes a runoff period that allows you to file claims for the previous plan year’s expenses. However, these expenses must have been incurred during the plan year or grace period (if applicable).
Log in to your online account to view your plan dates or talk to your employer to discuss specifics.
Who is covered by an HCFSA?
Only an individual who is defined by the Internal Revenue Code as a spouse, “qualifying child,” “adult child,” or “qualifying relative” of the account holder can be considered a qualifying dependent for reimbursement of medical expenses.
What is the difference between an HCFSA and a Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA)?
There are several differences between these accounts. For example, unlike an HCFSA, HRAs are funded solely by your employer. And unlike an HCFSA, the funds in an HSA roll over from year to year.
What is the difference between an HCFSA and a Limited Purpose FSA (LPFSA)?
An LPFSA is typically reserved for paying specific HSA-compatible medical expenses—like dental and vision costs—while HCFSAs can be used for a wide range of eligible medical expenses.
Additionally, LPFSAs may be paired with a Health Savings Account (HSA), while an HCFSA may not. Generally, you may not have an HCFSA and LPFSA at the same time.
What is the difference between an HCFSA and a Dependent Care Account (DCA)?
An HCFSA covers eligible medical expenses that you would otherwise pay for out of pocket. A DCA covers employment-related expenses for dependent care. These expenses must be services that allow you to go to work, and typically include day care and elder care for tax dependents.
Can I transfer money from my DCA to my HCFSA?
No. Contributed funds must remain in their designated account.
What expenses can be paid for with an HCFSA?
Your HCFSA will cover a variety of eligible medical expenses—see a substantial list of eligible HCFSA expenses.
For convenient online shopping, you may also purchase eligible products through the FSA Store.
When can I make election changes?
Normally, you can only elect contributions into your HCFSA during a yearly open enrollment period, but there are exceptions. Qualifying life events include:
- Status changes
- Change in marital status
- Birth of a child
- Adopting or placing a child for adoption
- Change in employment status that impacts plan participation status
- Certain judgments, decrees, or orders
- Loss of entitlement to Medicare or Medicaid
Election changes may only be made if the change is consistent with and on account of the qualifying life event. Some employers’ plans do not permit HCFSA election changes. Your employer determines if you can make mid-plan year election changes. You should contact your employer if you've experienced a qualifying event and wish to make a change.
Benefits Debit Card
What is a Benefits Debit Card?
A Benefits Debit Card allows you to pay for eligible expenses, such as prescriptions and copayments. If your employer has elected to provide a Benefits Debit Card, you may use this card instead of paying out of pocket.
Please note – if you use your Benefits Debit Card to pay for eligible medical expenses, you must submit a receipt* for every transaction.
Where can I use my Benefits Debit Card?
My Benefits Debit Card was lost or stolen. How do I get a new one?
My Benefits Debit Card is blocked. How can I reactivate it?
What is a pending transaction?
Pending transactions cannot be auto adjudicated and will need to be substantiated by providing sufficient documentation. You will receive a documentation request letter for these transactions. Learn how to submit documentation.
To submit documentation:
Log in to your online account or AFmobile
- Select the Additional Documentation button
- Select Reimbursement Account(s)
- Select the pending transaction and click Add Receipt to upload documentation
How do I request additional debit cards for my family members?
If you have additional debit card users, you’ll need to request cards for them through your online account. Here’s how:
- Log in to your online account.
- Select the Access My Reimbursement Account button.
- Hover over your username the right side of the navigation bar and select Profile.
- At the bottom of this screen, select Add Family Member.
- When adding a family member, the dependent or spouse’s Dependent ID is their Social Security number.
- In the Add Family Member window, select the box to Issue Dependent Card.
- When complete, click Next and Save.
I carried over $550 of my unused HCFSA funds into the new plan year, and I did not make a new HCFSA election for the new plan year. May I use my Benefits Debit Card for the carryover amount?
The amounts carried over into the new plan year, even though you did not make a new election. You may use your card during the year to pay for eligible expenses.
I did not make a new HCFSA election for the new plan year, since I was unable to use all of the funds last year. May I still use my Benefits Debit Card during the Run-Off Period?
No, you may not use your card during the Run-Off Period. You may submit eligible claims incurred during the previous plan year via the mobile app, our website, or via mail or fax.
Our HCFSA has the Grace Period. I had HCFSA funds left over from last year, so I decided not to participate in the HCFSA for the new plan year. May I still use my Benefits Debit Card during the Grace Period?
Yes, you may continue to use your card during the 2 ½ month Grace Period. After the Grace Period is over, your card will be disabled.
My new plan year just started – why did my recent charge to my Benefits Debit Card come from my new balance rather than my old balance?
New charges on the debit card will pull from the plan year based the date of swipe. If you have expenses that were incurred in the previous plan year and are trying to use funds from the previous plan year during the Run-Off Period, please submit manual claims.
My HCFSA has the Carry-Over, why did my recent eligible expense get paid from my new plan year rather than my previous plan year?
Because you are still able to submit claims during your Run-Off Period that were incurred during your previous plan year, any new transactions from the debit card will use amounts from your new plan year. Please file manual claims and do not use the debit card if you are trying to use up previous year’s funds. Once the Run-Off Period is over, if there are still funds left in your account, they will carry over into the new plan year, up to $550, and the debit card will be able to be used.
How do I file an HCFSA claim?
- Log in to your online account
- Click on the File a Claim button
- Select Reimbursement Account(s)
- Complete the claim form
- Click the Submit button
- Touch the Submit Reimbursement button on the AFmobile dashboard
- Complete the Claim Form
- Click the Submit button
- Fax or Mail
Eligible expenses generally must have been incurred during the current plan year. Log in to your online account or check with your employer for specific rules applicable to your plan.
When will my claim be paid?
Once your claim and all required documentation have been received, the turnaround time for claims processing is generally 5-7 business days.
How will I receive my reimbursement?
The fastest way to receive your reimbursement is through direct deposit. Or, you may also elect to receive a mailed check.
Enroll in direct deposit online by logging in to your online account, and select Manage My Reimbursement Account. Hover over your name to access your Profile, then click the Edit button above Reimbursement Method.
How can I view my balance and transaction history?
You may view your account information at any time by logging in to your online account. Select your account to review your balance and transaction history.
You can also view your account information from our app, AFmobile. You will be able to view your account balance from the dashboard, or, click on your reimbursement account to view a complete transaction history.
My transaction is marked resolved. Now what?
If your transaction is marked resolved, you’ve provided eligible documentation or made an out-of-pocket payment. No additional action is needed on resolved transactions.