Today’s reality highlights the need for benefits debit cards: in a 21st century, first-world society, card payments are the norm rather than the exception. Card payment terminals are found just about everywhere – doctors’ offices, pharmacies, grocery stores, retail shops, and more. With consumers utilizing debit and credit cards more and more each day, the convenience and security of card payment solutions is overtaking more traditional payment methods such as cash and check. Therefore, when it comes to employer benefits packages and consumer directed healthcare, an account-linked benefits debit card makes sense.
In addition to incentivizing plan enrollment for employers, benefits debit cards can also streamline the process by reducing the need for extensive account administration and claims filing. Thankfully for employers and employees alike, a benefits debit card can link to just about any employer-sponsored benefit account. Consider ‘the big three’ of consumer directed healthcare:
- Flexible Spending Account (FSA): With an FSA, employees can use the card in store and online to pay for IRS-approved medical-related expenses. Some retailers clearly identify FSA-approved items, and some card processors offer auto-adjudication for those purchases. This makes it easy for card holders to know where their FSA funds are going, and the restricted purchasing ensures they aren’t using their funds for non-approved expenses. In addition, if an account holder has a Dependent Care FSA, they can use the card at their childcare provider to pay for those costs.
- Health Reimbursement Arrangement (HRA): Another benefit option that can be linked to a debit card is an HRA. Card holders can use the card to pay for pre-approved expenses, rather than paying out of pocket and filing for reimbursement. This can reduce the need for extensive claims filing which is burdensome on both the employer and the employee.
- Health Savings Account (HSA): HSAs can also be linked to a debit card. With HSAs, anyone can fund the account and the debit card enhances the convenience of the set aside account funds. A debit card for an HSA can be particularly useful for account holders enjoying rollover at years’ end, which can result in significant account growth. Furthermore, since the employee owns the HSA, offering a debit card can enhance account enrollment and usage.
Consider adding a debit card to your employer-sponsored benefits package. The need for secure, convenient access to funds with the rise of consumer directed healthcare makes it a no-brainer.
DataPath Administrative Services offers the Summit debit card, which can be linked to FSAs, Dependent Care, HRA, and HSA accounts. Contact us today to learn more.