Flexible Benefits FAQs

An FSA is a special account authorized by the IRS that helps employees pay for certain expenses tax free. A medical FSA allows you to pay for eligible health care expenses not covered by your insurance plan.

A dependent care FSA allows you to pay for the care of a qualified dependent child or adult (such as a senior relative) so that you can work. FSA deposits are not subject to income tax, allowing you to pay for these eligible expenses with pre-tax dollars — which can amount to a savings of up to 40% off normal costs.

Many everyday health care and dependant care expenses can not be avoided. An FSA can help you save on these expenses. Because funds deposited into an FSA are not subject to income tax, when you use these funds to pay for eligible expenses, you are using pre-tax dollars. This can mean a savings of up to 40% off normal costs.

To determine how much you could save annually, review the list of eligible expenses and then use our Section 125 Cafeteria Plan Calculator to add up your savings. Remember: Any balance left in your account at the end of the year is forfeited, so calculate your contribution carefully.

Health Care FSA — Certain medical expenses, prescription drugs, and over-the counter health care items are reimbursable. Dental expenses and some insurance premiums and transportation costs may also be reimbursable. For a detailed explanation, see eligible expenses.

Dependent Care FSA — Typical expenses covered include senior day care, child day care, babysitting, before-and-after school programs and sick child care. To be eligible, care for dependents must allow the FSA participant to work. For a detailed explanation, see eligible expenses.

Expenses you incur for your general well-being, that are not primary for medical care, are not reimbursable. Examples include nutritional supplements, illegal operations and treatment, health club dues and cosmetic surgery (unless medically necessary). For a complete list of ineligible items, refer to Publication 502 on irs.gov.

Additionally, expenses may not be incurred before your program is effective, and may not be reimbursable through your health insurance.

Many OTC drugs are eligible for reimbursement. Reimbursement for some OTC drugs requires a note from your health care provider called a Medical Determination Form, listing the diagnosis of your medical condition and the recommendation of the OTC drug. Check the eligible expenses list for more details about reimbursement rules.

The IRS requires that expenses for medical procedures and services, and some OTC drugs be medically necessary in order to be eligible for reimbursement. This means they must be primarily to alleviate or prevent physical or mental defect or illness.

Some services or drugs may have dual purpose. For example, a procedure may generally be deemed cosmetic in nature but may also be used to treat a medical condition. In order to show that such a treatment is medically necessary, the IRS requires you submit a note from your provider, or a Medical Determination Form explaining your diagnosis and the recommendation for treatment.

For a list of services and OTC drugs requiring a Medical Determination Form, see the eligible expenses list. If your expense requires a letter for reimbursement, download the Medical Determination Form, have your provider complete the form, and submit it with your claim to SHDR.  

In some cases, prescription drugs and medical services must be prescribed as medically necessary by your health care provider for those items to be reimbursable. A note from your provider listing the diagnosis of the medical condition and the treatment recommendation, called a Medical Determination Form must be submitted with your claim. Some OTC items also require a recommendation from your provider.

For a list of services and OTC drugs requiring a Medical Determination Form, see the eligible expenses list. If your expense requires a letter for reimbursement, download the Medical Determination Form, have your provider complete the form, and submit it with your claim to SHDR. 

For expenses to be eligible under a dependent care FSA they must be for an eligible dependent. An eligible dependent is someone who spends at least eight hours per day in your home and who is either a dependent child under the age of 13 or a spouse, adult dependent, or child over 13 who is physically or mentally incapable of self-care and for whom you can claim an exemption. For a detailed explanation, see eligible dependents.

Your FSA is funded by you through payroll deductions. During plan enrollment, you decide if and how much to contribute to your account. If you elect to contribute to a health care FSA, your employer will fully fund your account with your elected amount at the beginning of the plan year. If you elect to contribute to a dependent care FSA, your employer will make incremental deposits into your account at each pay period.

Per IRS rules, you can have a health care and dependent care FSA and an HRA, although you may not claim reimbursement from both accounts for the same expense. Eligible expenses should first be charged to your FSA and then to your HRA. You may not have an HSA and a health care FSA or an HRA. You may have a dependent care or limited scope FSA (which covers only dental and vision) and an HSA.

Under current IRS regulations, you forfeit any balance left in your account at the end of the plan year. Because of the "use it or lose it" rule, you should estimate carefully before making your annual contribution.

A grace period allows you to continue requesting reimbursement for medical treatment or services from your FSA after the plan year has expired. This allows you more time to utilize any left-over funds in your account. Depending on the plan features your employer selected, your plan may have a grace period. Check with your benefit administrator to confirm whether your plan includes a grace period.

No. The amount you choose to contribute to your FSA during enrollment may not be changed until the next enrollment period unless you experience a qualifying “life event,” such as marriage, divorce, the birth of a child or adoption.

If you switch jobs or retire and have money left in your FSA, you may request reimbursement for any eligible expenses you incur before you leave. However, if there is a balance left that you can not claim, it will be forfeited. Any expense you incur after you leave is not eligible for reimbursement from that FSA.

Yes. SHDR Flexible Benefits provides online account access to make managing your plan easy and convenient. Your online account management tool allows you to:

• Review claims history
• Submit a claim online
• Check enrollment/status information
• View benefit details
• Read email alerts about your plan

If you have paid out-of-pocket for an eligible expense, you must submit a claim and any requested documentation to receive reimbursement. Just download and complete the FSA Claim Form and submit it to SHDR. Follow the instructions outlined on the form. 

If you supplied an email address when you registered in the online account management tool, you will automatically receive an email alert when we receive a claim from you. After your claim has been processed, you may review payment details in the Claims History section of the tool.

You can check your FSA balance and review transactions in your online account management tool. You can also call SHDR at 1-800-768-4873 or 1-800-930-2441 weekdays from 8 a.m. to 6 p.m., Eastern Time.

Yes. If you file claims manually and would like your reimbursement to be deposited directly into your checking or savings account, complete and submit the Direct Deposit Authorization Form. Follow the instructions outlined on the authorization form.

For answers to additional questions, call SHDR at 1-800-768-4873.

An HRA is a special tax-advantaged account approved by the IRS to help you save money on health care expenses. Your employer deposits money into an account for you and you can use those funds tax-free to pay for eligible out-of-pocket health care expenses, such as health insurance deductibles, coinsurance, and pharmacy expenses. It is not an insurance program, but a financial reimbursement plan.

Reimbursements from your HRA for eligible health care expenses are not considered part of your income and are not taxed. When you use HRA funds to pay for eligible expenses you are saving up to 40% off the normal cost.

HRA funds can be used to pay for eligible health care costs. Your employer determines which costs will be covered by your HRA from a list of IRS-qualified health care expenses, so eligible medical expenses vary by employer. Typically eligible costs include expenses not covered by your health insurance such as deductibles, copayments, coinsurance, prescription drugs, vision and dental plans, and other out-of-pocket costs. Over-the-counter drugs that are medically necessary, like allergy medications or aspirin, may also be covered by your plan.

To review IRS-qualified costs, see eligible expenses. Remember: Your employer may exclude some services, so be sure to check your plan information to determine which expenses your plan covers.

Expenses you incur that are for your general well-being, but that are not medically necessary, are not eligible and cannot be reimbursed with your HRA. Examples include nutritional supplements, illegal operations and treatment, health club dues and cosmetic surgery (unless medically necessary). For a complete list of ineligible items, refer to Publication 502 on irs.gov.

Additionally, expenses may not be reimbursed if they are:

• Not defined as eligible expenses by your employer
• Not considered eligible by the IRS
• Incurred by you, your spouse or eligible dependent before your participation in the program was effective
• Reimbursed to you through any other source, such as your health plan.

Medically necessary OTC drugs may be considered eligible by the IRS and may be eligible for reimbursement under your plan. These expenses may require a Medical Determination Form from your health care provider listing the diagnosis of the medical condition and the recommendation of the OTC drug. Check the eligible expenses list for more details about reimbursement rules.

In some cases, the IRS requires that a drug or treatment be medically necessary in order to be eligible for reimbursement. Prescription drugs and medical services must be prescribed by your health care provider for those items to be reimbursable.

You may be required to submit a Medical Determination Form from your provider listing the diagnosis of the medical condition and the recommendation of the treatment with your claim in order to receive reimbursement. Some OTC items also require a letter from your provider.

The IRS requires that expenses for medical procedures and services, and some OTC drugs be medically necessary in order to be eligible for reimbursement from your HRA. This means they must be primarily to alleviate or prevent physical or mental defect or illness.

Some services or drugs may have dual purpose. For example, a procedure may generally be deemed cosmetic in nature but may also be used to treat a medical condition. In order to show that such a treatment is medically necessary, the IRS requires you submit a note from your provider, or a Medical Determination Form explaining your diagnosis and the recommendation for treatment.

For a list of services and OTC drugs requiring a Medical Determination Form, see the eligible expenses list. If your expense requires a letter for reimbursement, download the Medical Determination Form, have your provider complete the form, and submit it with your claim to SHDR. 

Yes, as long as your dependent meets the definition of a dependent as defined by the IRS and is included in your employer's plan.

Your HRA is funded by your employer. An annual contribution amount is determined in advance, but typically employers will not deposit the total amount into your account at the beginning of the plan year. Generally, equal amounts are contributed on a regular schedule throughout the year, often in increments that coincide with each pay period. Funds will not be available for reimbursement until your employer deposits them into your account.

Per IRS rules, you can have a health care and dependent care FSA and an HRA, although you may not claim reimbursement from both accounts for the same expense. Eligible expenses should first be charged to your FSA and then to your HRA. You may not have an HSA and a health care FSA or an HRA. You may have a dependent care or limited scope FSA (which covers only dental and vision) and an HSA.

If you use HRA funds for something other than a qualified medical expense your employer has pre-approved, you will be asked to repay that amount to replenish the HRA.

Most HRA funds "reset" at the beginning of the year, though some employers choose to rollover unused funds from year to year. Review your plan materials or check with your benefits administrator for details about your company's HRA policy.

If you switch jobs or retire and have money left in your HRA, you may request reimbursement for any eligible expenses you incur before you leave. However, if there is a balance left that you can not claim, it will remain with your employer. Any expense you incur after you leave is not eligible for reimbursement from that HRA.

Your employer owns the arrangement and determines the scope of how it is set up and used — including the amount you and each employee will receive. The HRA is not portable. If you change jobs, the arrangement and any funds stay with the employer.

Yes. SHDR Flexible Benefits provides online account access to make managing your plan easy and convenient. Your online account management tool allows you to:

• Review claims history
• Submit a claim online
• Check enrollment/status information
• View benefit details
• Read email alerts about your plan

If you have paid out-of-pocket for an eligible expense, you must submit a claim and any requested documentation to receive reimbursement. Just download and complete the HRA Claim Form and submit it to SHDR. Follow the instructions outlined on the form.

In some cases, account contributions are made in monthly increments. So only the amount accumulated to date is available for reimbursement. Reimbursement requests above the account balance amount will be pending until additional contributions are made to your account. Your employer determines the scheduled for contributions (either in monthly, quarterly, annual increments or on some other basis).

You can check your HRA balance and review transactions in your online account management tool. You can also call SHDR at 1-800-768-4873 or 1-800-930-2441 weekdays from 8 a.m. to 6 p.m., Eastern Time.

Yes. If you file claims manually and would like your reimbursement to be deposited directly into your checking or savings account, complete and submit the Direct Deposit Authorization Form. Follow the instructions outlined on the authorization form.

For answers to additional questions, call SHDR at 1-800-768-4873.

An HSA is a special account authorized by the IRS to help individuals and families pay for current and future out-of-pocket health care expenses. An HSA is a tax-advantaged account — contributions into the account are tax-free and withdrawals made for eligible health care expenses are also tax-free.

An HSA also offers plan participants the ability to save for future health care expenses. Any balance left in your HSA at the end of the plan year rolls over and accrues interest. When the account reaches a certain figure, you may invest the excess amount into qualified mutual funds. BB&T offers a convenient HSA Mutual Fund Investment Sweep subaccount which allows you to easily transfer funds from your HSA into selected mutual funds.

An HSA is also completely portable, so you can take it with you if you change jobs or switch health coverage. IRS rules require that an HSA be linked to a qualified high-deductible health plan. The high-deductible health plan may be offered by your employer. The HSA can be established through a custodian or trustee. SHDR's parent company BB&T is the custodian for any HSA obtained through SHDR.

HSA distributions are tax-free if used for IRS qualified health care expenses. Eligible health care expenses include services and items such as the following:

• Doctor's office visits
• Over-the-counter (OTC) medications
• Coinsurance
• Services not covered by insurance such as LASIK eye surgery

For a more detailed list refer Internal Revenue Code Section 213(d) on irs.gov.

Nonqualified distributions will be taxed as part of gross income and will incur a 10 percent penalty. After age 65, the 10 percent penalty is dropped, though the distribution is still treated as taxable income.

Anyone can contribute to an HSA on your behalf including your employer, yourself, or your family.

To be eligible to open and contribute to an HSA, an individual must meet all of the following criteria:

• Be covered under a qualified high-deductible health plan (QHDHP)
• Not be covered by any other non-QHDHP plan (with certain exceptions for plans providing certain limited types of coverage, such as a vision plan)
• Not be enrolled in Medicare
• Not be claimed as a dependent on another person's tax return

Contributions to an HSA can be made at any time during the year in any increment, including:

• All at once at the beginning of the year
• All at once at the end of the year
• In equal amounts during the year

Contributions to an HSA can be made through April 15 of the following year. For example, 2008's contributions can be made through April 15, 2009.

To open/contribute to an HSA, individuals cannot be covered by any plan except for:

• Dental or vision coverage
• Long-term care coverage
• Accident/disability coverage
• Hospital insurance-type coverage/disease specific coverage

Individuals can be covered by more than one QHDHP and still be eligible to contribute to an HSA.

The 2009 maximum annual contribution for single coverage is $3,000 and for family coverage, $5,950. These amounts will be updated each year to account for inflation. Rollover amounts from previous years and/or Archer medical savings accounts (MSA) or another has do not count toward the maximum annual contribution. In 2009, individuals who are age 55 and older who are not enrolled in Medicare (Part A or Part B) can contribute an additional $900.

The 2010, maximum annual contribution for single coverage will be $3,050 and for family coverage $6,150. These amounts will be updated each year to account for inflation. Rollover amounts from previous years and/or Archer medical savings accounts (MSA) or another HSA do not count toward the maximum annual contribution. In 2010, individuals who are age 55 and older who are not enrolled in Medicare (Part A or Part B) can contribute an additional $1000.

Yes. Full year statutory contribution limits are permissible, but the HSA owner must maintain eligibility throughout the "testing period," which runs from the last month of the initial eligibility year through the end of the 12-month period following that month. In 2008, limits are $2,900 for single coverage and $5,800 for family coverage and in 2009 limits are 3,000 for single coverage and $5,950 for family coverage.

If HSA owners are not eligible for this entire testing period, they must include in their gross income the contributions made for the months when they were not otherwise qualified. This amount will also be subject to a 10 percent penalty. The tax and penalty do not apply if the HSA owner is no longer HSA-eligible because of death or disability.

No. HSAs are strictly individual accounts. A husband and wife enrolled in a family QHDHP can do the following:

• Open individual HSAs and contribute to both, but the collective total of both must not exceed the family maximum.
• Open an HSA in one spouse's name and contribute up to the family maximum.

No. But if they have an existing HSA, they can use the funds already in it.

If either spouse has family coverage under a QHDHP, both are treated as having family coverage. The 2009 maximum statutory contribution limit is $5,950 for family coverage. The 2010 maximum statutory contribution limit is $6,150 for family coverage. Whether each spouse opens an individual account or one spouse opens an account, the collective total must not exceed the family maximum.

An excise tax of 6 percent for each taxable year is imposed on the account beneficiary for excess individual contributions. However, the account beneficiary can avoid the excise tax on excess contributions, by withdrawing such excess contributions before the last day prescribed by law (including extensions) for filing the account beneficiary's federal income tax return for the taxable year. The net income attributable to the excess contributions is included in the account beneficiary's gross income.

Generally, health insurance premiums are not qualified medical expenses, except for the following:

• Qualified long-term care insurance
• COBRA health care continuation coverage
• Health care coverage while an individual is receiving unemployment compensation

In addition, individuals over age 65 may use HSA funds to pay the following premiums:

• Medicare Part A and/or B
• Medicare HMO premiums for employer-sponsored health insurance or employer-sponsored retiree plans.

However, Medicare supplemental policies are not qualified medical expenses.

Yes. Individuals do not have to be enrolled in a QHDHP to use their HSA. However, individuals can make contributions to an HSA only if enrolled in a QHDHP.

No. Even if your health plan is effective, you must open your health fund account for the for the HSA to be considered established. If you delay opening your account, the IRS may infer you intended to open it at a later date.

Yes, but the FSA would have to be a Limited Scope FSA, which limits claim reimbursement to vision and dental only. Or, you must be participating in the FSA plan’s 2 ½ month grace period for a prior year FSA plan.

Individuals can choose to contribute to their HSA as long as they are enrolled in a QHDHP.

Employer contributions to an HSA must be reported on the employee's W-2 Form. In addition, trustees will issue reports on HSA contributions and distributions.

You can deduct your contributions to your HSA when calculating your adjusted gross income whether or you individual itemize deductions.

However, the individual cannot also deduct the contributions as a medical expense deduction under section 213. Employee contributions can be made pre-tax through a cafeteria plan (if sponsored by an employer) and/or post tax. Pre-tax employee contributions are not deductible for the employee. Employer contributions are tax deductible for the employer, and the employer realizes FICA/FUTA savings on pre-tax employee contributions. Check with your tax adviser for additional details regarding the tax treatment of HSAs.

Contributions made by a family member on behalf of an eligible individual to an HSA (which are subject to the limits) are deductible by the eligible individual in computing adjusted gross income.

Initially, your HSA will be a bank deposit account that will earn tiered interest rates for balances in the cash portion of the HSA. These funds are insured by the FDIC to the maximum extent provided by law. After your account reaches a cash balance of $3,500 (the HSA investment threshold amount), you will have the opportunity to invest in a set menu of mutual funds predetermined by SHDR by setting up an HSA Mutual Fund Investment Sweep subaccount to your HSA.

At a later date, SHDR may allow other fund options, and will provide you with at least 30 days notice prior to making any changes. Mutual fund investments require a minimum investment of $500. Any mutual funds that you purchase in your Sweep Investment subaccount are not FDIC-insured, are not a deposit or other obligation of BB&T are not guaranteed by BB&T or any of its affiliates, and are subject to investment risk, including the possible loss of the principal amount invested.

When your HSA deposit balance reaches $3,500 for the first time, you will see an icon on your Account Summary screen in BB&T OnLine^® Banking. This icon will link you to the page that allows you to set up your Mutual Fund Investment Sweep subaccount and make selections from the menu of available mutual funds.

Any mutual funds that you purchase in your Sweep Investment subaccount are not FDIC-insured, are not a deposit or other obligation of BB&T, are not guaranteed by BB&T or any of its affiliates, and are subject to investment risk, including the possible loss of the principal amount invested. Information on mutual fund investment options is available, including prospectuses on BBTFUNDS.com.

Your BB&T OnLine HSA Account Summary screen will feature a link to your HSA Investment Sweep subaccount. The following screen will show your cash balance in your deposit subaccount, the net asset value of your mutual fund investments in your Investment Sweep subaccount, and your available balance. Your available balance is the amount of funds held in cash in your HSA, plus 70% of the net asset value of mutual funds held in your HSA Investment Sweep subaccount, adjusted for pending transactions.

Your BB&T OnLine HSA Account Summary screen will feature a link to your HSA Investment Sweep subaccount, where you may make changes to your investment options. From this page, you may redeem shares in mutual funds and reinvest the proceeds in other mutual funds from the menu of funds available, or change the percentages of swept funds that are allocated to your mutual fund investments.

You also may direct BB&T to liquidate your entire investments in the HSA Investment Sweep sub-account, close that Investment Sweep subaccount and transfer the funds automatically to your HSA bank deposit. You can later reestablish the HSA Investment Sweep subaccount at no additional charge. You cannot, however, direct BB&T to liquidate one mutual fund selection and not others. Changes in the allocation of your mutual fund investments or any liquidation of the entire investment in your HSA Investment Sweep subaccount can be directed without the imposition of any charges or fees.

Under certain conditions, BB&T may automatically liquidate mutual fund shares in your HSA Sweep Investment subaccount. If the available balance in your HSA drops below $1,000, BB&T will automatically liquidate mutual fund shares in the HSA Sweep Investment subaccount and transfer the proceeds in order to restore the HSA deposit to at least $1,000.

Also, if you incur an expense using your Benefit Access card that, at the time the transaction is processed, is in excess of the cash balance in your HSA, but not in excess of your available balance, we will liquidate mutual fund shares in the HSA Sweep Investment subaccount to cover the shortfall. A $500 minimum transfer amount is required.

If your investment subaccount holds shares in more than one mutual fund, we will liquidate shares from each such mutual fund on a pro rata basis according to its relative value in your investment subaccount portfolio. Your available balance is the amount of funds held in cash in your HSA, plus 70% of the net asset value of mutual funds held in your HSA Investment Sweep subaccount, adjusted for pending transactions.

Paying for your qualified medical expenses as they occur and reimbursing yourself in later years allows the HSA to grow tax-deferred. You must retain records of qualified medical expenses not reimbursed so they can be reimbursed in subsequent years. Maximum contributions are also limited by your HDHP deductible and the month in which your HDHP and HSA are established (and you meet the other HSA eligibility requirements), so it is important to set up your HSA as soon as you have applied for an HDHP.

Initially, your HSA will be a bank deposit account that will earn tiered interest rates for balances in the cash portion of the HSA. These funds are insured by the FDIC to the maximum extent provided by law. After your account reaches a cash balance of $3,500 (the HSA investment threshold amount), you will have the opportunity to invest in a set menu of mutual funds predetermined by SHDR by setting up an HSA Mutual Fund Investment Sweep subaccount to your HSA.

At a later date, SHDR may allow other fund options, and will provide you with at least 30 days notice prior to making any changes. Mutual fund investments require a minimum investment of $500. Any mutual funds that you purchase in your Sweep Investment subaccount are not FDIC-insured, are not a deposit or other obligation of BB&T are not guaranteed by BB&T or any of its affiliates, and are subject to investment risk, including the possible loss of the principal amount invested.

The SHDR Benefit Access Visa Card is a special-purpose Visa card that gives you an easy and convenient way to pay for qualified health care/benefit expenses. The card lets you electronically access the pre-tax amounts set aside in your FSA, HRA or HSA.

The Benefit Access Card works like a typical Visa card, with the value of your FSA, HRA or HSA contribution stored on it. You can use your card to pay for qualified health care expenses at providers or merchants who accept Visa and who are able to identify eligible items at checkout. The amount of the purchases will be automatically deducted from your account and pre-tax dollars will be electronically transferred to the provider/merchant for immediate payment. Your provider or merchant recognizes the Benefit Access Card as a credit card, so you do not need a PIN to use your card.

The Benefit Access Card eliminates the need to pay for expenses out-of-pocket and submit a claim for reimbursement. You simply swipe your card for eligible expenses and the funds are automatically deducted from your account for payment.

Your Benefit Access Card works like a typical Visa card in that you can use it at businesses that accept Visa. However, it is a special-purpose Visa debit card that can be used only for qualified health care and other benefit expenses. It cannot be used for expenses such as gasoline or eating out. Although your card is a prepaid debit card, when you use your card, you should select the "credit" option. No PIN is required. There are no monthly bills and no interest.

You will receive two cards. Each card user should sign the card they will use.

As long as your flexible benefit plan (FSA, HRA or HSA) remains part of your company's benefit program and you elect to participate each year, you can continue to use your card. It will be loaded with the new annual election amount at the start of each plan year or incrementally with each pay period, based on the type of account you have.

You should call SHDR at 1-800-768-4873 to report a lost or stolen card as soon as you realize it is missing. We will deactivate the lost/stolen card and send you a replacement. Replacement cards are $10 each, which will be deducted directly from your pre-tax account. 

If SHDR and the issuing bank are notified within 2 business days, you will not be responsible for any charges. If the notification is after 2 days, you may be responsible for the first $50 or more.

To activate your card, call the toll-free number on the activation sticker on the front of the card. You can use both cards once the first card is activated — you do not need to activate both. Each card user should sign the card with his or her name.

For a health care FSA, the dollar value on the card will be the total amount you elected to contribute during your annual benefit enrollment. Eligible expenses will be deducted from that amount as you use your cards or submit manual claims.

Dependent care FSAs and HRAs are funded incrementally at each pay period based on your allocation. Your card will reflect only the amount already contributed to your account. So, remember to check your balance in order to avoid card declines at the point of service.

Your HSA card will also reflect only the amount that has actually been contributed to your account. If your employer elects to contribute to your HSA, they may opt to fully fund your account at the beginning of the plan year or throughout the year at another interval. If you contribute to your HSA, you may contribute funds to your account at any time. For your convenience, you can opt to fund your HSA through payroll deduction or make deposits through your local BB&T branch. Keep track of your balance to avoid declines when you use your card.

You can use your Benefit Access Card to pay for eligible goods and services at freestanding pharmacies and health care providers, such as hospitals, doctors, and dentists if those facilities accept Visa.

You may also use your card at discount stores, department stores and supermarkets, but only if those retailers are able to identify FSA-eligible items at checkout (per IRS rules effective January 2008). This allows the retailer to charge only the eligible expenses to your Benefit Access Card, and ineligible items to another form of payment. If a retailer can not identify eligible items, your transaction will likely be declined even if you used your card at that store in the past.

To find a retailer who can accept your Benefit Access Card, review the IIAS Merchant List. Merchants on this list use an Inventory Information Approval System (IIAS) accepted by the IRS to identify eligible merchandise. Providers such as hospitals and doctor's offices should be able to accept your card regardless of their card system.

Yes. Your card will not be accepted at locations that do not offer eligible goods and services, such as hardware stores, restaurants, bookstores, gas stations and home improvement stores. Additionally, per IRS rules effective January 1, 2008, cards will not be accepted at discount stores, department stores, and supermarkets that cannot identify FSA-eligible items at checkout.

To find a retailer who can accept your Benefit Access Card, review the IIAS Merchant List.

Your Benefit Access Card is actually a prepaid debit card. But, since there is no "prepaid" selection available, participants should select “credit.” You do not need a PIN and cannot get cash with your card.

No. You do not need a PIN to use your card. After swiping your debit card at a provider/merchant terminal, select the “credit” option. Do not select debit, since no PIN is associated with the card.

As of January 2008, you may need to make purchases at discount stores and supermarkets differently than you may have in the past. First, confirm that the retailer can accept FSA cards by reviewing our participating retailer list.

To find a retailer who can accept your Benefit Access Card, review the IIAS Merchant List.

Then, follow this process:

• Take prescriptions, vision products, over-the-counter drugs and other health care purchases to the register at checkout to let the clerk ring them up.
• Present your card or swipe it for payment.
• If the card swipe transaction is approved (e.g., there are sufficient funds in the account and at least some of the products are FSA-eligible), the amount of the FSA-eligible purchases will be deducted from your account balance. The clerk will then ask for another form of payment for the non-FSA-eligible items.
• If the card swipe transaction is declined, the clerk will ask for another form of payment for the total amount of the purchase. (File a claim for reimbursement for these expenses).
• The receipt will identify the FSA-eligible items and may also show a subtotal of the FSA-eligible purchases.
• In most cases, you will not receive requests for receipts for FSA-eligible purchases made in participating discount stores or supermarkets.

Yes, as long as the website can identify FSA-eligible expenses at checkout and charge only those expenses to your Benefit Access Card. You will need to use another card to pay for ineligible expenses. To find a retailer who can accept your Benefit Access Card, review the IIAS Merchant List.

The most common reasons a card may be declined at a merchant's register are:

• The card has not been activated.
• The card has been used before the 24-hour period after activation has elapsed.
• The participant has insufficient funds in his or her employee benefit account to cover the expense.
• Ineligible expenses have been included in the purchase. Retry the transaction with the eligible expense only.
• The merchant is encountering problems such as coding or swipe box issues.
• The discount store, department store, or supermarket cannot identify FSA-eligible items at checkout (according to IRS rules effective January 1, 2008). To find a retailer near you who can accept your Benefit Access Card, review the IIAS Merchant List.

Yes. You should always save itemized receipts for FSA and HRA purchases made with your card. You may be asked to submit receipts to verify that the expense complies with IRS guidelines. Each receipt must show:

• Merchant or provider name
• Service received or the item purchased
• Date and the amount of the purchase

Note: HSA participant will not receive a request for a receipt from SHDR or BB&T, but should always keep receipts for tax purposes.

You will receive a letter or notification from SHDR if there is a need to submit a receipt. All receipts should be saved per IRS regulations.

If receipts are not submitted as requested to verify a charge made with your card, your card may be suspended until receipts are received. You may be required to repay the amount charged. SHDR will advise you if your card has been suspended, if a receipt is not received. Submitting a receipt or repaying the amount in question will allow the card to become active again.

Usually the service provider can recreate an account history and provide a replacement receipt. In the event that a receipt cannot be located, recreated, or if the expense is ineligible for reimbursement, you will need to send a check or money order to SHDR for the transaction amount so it can be credited back to your account.

No. The card must be activated prior to the order and/or purchase date of prescriptions. In some cases, you may need to wait 1 business day after activating the card to purchase prescriptions at the pharmacy. For example, if the card is activated on Tuesday, a prescription can be ordered and picked up on Wednesday.

You may view your account balance in the Benefit Status section of the online account management tool. You can also call SHDR at 1-800-768-4873.

By checking your account balance often — either online or by calling SHDR at 1-800-768-4873 — you will have a good idea of how much is available. If you incur an expense that is greater than the amount remaining in your account, you may be able to split the cost at the register between your Benefit Access Card and another form of payment. Check with the merchant. Alternatively, if additional funds are scheduled to be added to your account at a later date, you may pay by another means and submit a claim with your receipt for reimbursement.

Yes, if a merchant or provider can not accept your Benefit Access Card, or you simply decide not to use your card, just pay for your expenses and submit a request for reimbursement. To submit a request, download the claim form for your plan and submit it with your receipts to SHDR. HSA funds can be accessed by withdrawing funds from your local BB&T Branch.

For answers to additional questions, call SHDR at 1-800-768-4873.