The Pre-tax Forma Card is a convenient way to access your Customer-Directed Healthcare (CDH) benefits without having to pay out-of-pocket or wait for reimbursement. However, it's important to keep in mind that you can only use your CDH benefits for services that have already been provided. This means that prepayments are not eligible under IRS regulations.
For example, let's say you pay for next month's daycare expenses in advance. Since the service has not yet been provided, this payment would be considered a prepayment and therefore ineligible even if daycare is an eligible expense under Dependent Care FSA (DCFSA).
What happens if I accidentally make a prepayment with my card?
If you accidentally use your Pre-tax Forma Card for a prepayment, and the transaction falls into the adjudication process, you will then be asked to provide further transaction documents, such as an invoice or proof of payment.
Once you provide these documents, the transaction will be marked as ineligible because it's a prepayment. A “Balance Due” will then be created and your account will be temporarily deactivated. You’ll have to offset the balance due with eligible claims so you can use your account again.
To avoid this, we recommend that you pay for prepayment expenses out-of-pocket and file a reimbursement claim after the service has been provided. For instance, if you pay in April for a service that will happen on May 1st, wait until May 1st (or any day after that) to file a reimbursement claim for it. By doing so, you'll ensure that you are using your CDH benefits appropriately and avoiding any ineligible transactions.
Feel free to reach out to Forma's Customer Support team via live chat or at firstname.lastname@example.org. You can also reach us by phone at 844-902-2902 on Monday through Friday, 8 AM EST - 8 PM EST.