•   InTouch provides access to your beneifts, 24/7. Login to InTouch  or  Register for InTouch             Access your FSA, HRA, HSA, and transportation benefts, 24/7. Login to MyFlex.             Access your COBRA benefits, and make a payment, 24/7. Login to the COBRA Web Portal. 
  • Benefit Debit Card 

    Transaction Substantiation

    Employers may provide a prepaid benefit card to participants for their health flexible spending account (FSA), health reimbursement arrangement (HRA), or transportation account. The card gives participants an easy, automatic way to pay for qualified expenses. However, all transactions on the card are considered conditional until properly substantiated. Participants should always keep their itemized receipts for their tax records and in case documentation is needed to substantiate their transactions.

    Auto-substantiation

    Many types of benefit card transactions are automatically substantiated, but not all. Examples of transactions that often can be automatically substantiated are:

    • Co-pays. If copies of the health plan benefit summaries are provided to us, we can add co-pay amounts to our system. Note: It is important to notify us of changes to benefits. This helps to minimize the number of requests to participants for substantiating documentation from participants.
    • Pharmacy transactions, such as prescription medications or eligible over-the-counter products purchased from a merchant with an inventory control system, such as a pharmacy.
    • Transit and parking transactions through a qualified vendor. 

    When Substantiation Is Needed

    If a transaction can’t auto-substantiate, we will request a copy of the itemized receipt as documentation for the charge. If the transaction can’t be substantiated within the allotted time, the participant’s card will be temporarily suspended while we attempt to obtain substantiation. In accordance with Internal Revenue Service (IRS) regulations, amounts for transactions that are not properly documented or deemed ineligible are considered “improper.” We allow up to 150 days after the plan year ends or the card closes for a participant to resolve their outstanding transactions before these are reported to their employer as unrecoverable.

    Correcting Improper Payments 

    Improper payments may be recouped in accordance with applicable IRS guidance. Participants must repay any improper payments. If a transaction is determined to be ineligible, one or more of the following correction methods will be used:

    • Repayment of the improper amount by the participant
    • Claims substitution or offset of future claims until the amount is repaid
    • Withholding the improper payment from the participant’s wages or other compensation (following applicable federal and state law)

    If the plan is unable to recoup an improper payment, then the employer should treat the payment as any other business indebtedness. If the participant’s debt is not collected, and their employer forgives the indebtedness, the payment/debt amount should be reported as wages on Form W-2 for the year in which the indebtedness was forgiven. The reported amount is subject to withholding for income tax, FICA, and FUTA.

    Help for Participants

    The participants’ area of our website, PSA.PacificSource.com/Flex, provides information about using the benefits debit card. There are examples of eligible and ineligible expenses, as well as answers to frequently asked questions. 

    Questions?

    You're always welcome to contact us!

    PacificSource Administrators
    110 International Way
    Springfield, OR 97477

    Sales and Service: PSAsales@pacificsource.com 
    Flex Benefits: PSAcustomerservice@pacificsource.com
    COBRA Benefits: COBRA@pacificsource.com

    (541) 485-7488 or toll-free (800) 422-7038  
    Fax (541) 485-8759 or toll-free (800) 575-1109 

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