When processing transactions, some products or services may be eligible under more than one pre-tax benefit. The system will pull funds based on payment order settings so if there’s insufficient funds in one account, the transaction can be completed using funds from another account.
The payment order is:
LPFSA > FSA > HSA
For example, if someone goes to the dentist, that service is eligible under their LPFSA and HSA. The total amount is $500 but there is only $400 in their LPFSA. The transaction will pull $500 from the from the HSA account only, if there are sufficient funds.
Forma relies on merchant codes and merchant name to indicate what products and services a vendor provides to determine which account to charge. For example:
- CVS is considered a pharmacy merchant, so only FSA or HSA accounts will be charged
- A dentist is classified as a dental merchant, so only LPFSA, FSA, or HSA will be charged
There are instances where merchants are not categorized under merchant category codes (MCCs) correctly.
For example, if someone goes to the hospital for a dental emergency it may be assumed that the expense will be covered under an LPFSA. However, hospital MCCs are not compatible with LPFSA eligibility. In this instance, the transaction will pull from the HSA only.
In this case, if you’d like to apply this expense to your LPFSA account instead of HSA account, follow the steps below.
- Deposit the funds into your HSA account
- Log in to Forma
- Navigate to Benefits > Health Savings Account
- Label the transaction as "Returning money taken out by mistake"
- File a claim under the correct account that should be charged (in this case, LPFSA), including the receipt as well as a screenshot indicating you've returned the mistaken distribution to your HSA account.
If the incorrectly charged account is from a non-HSA benefit, for example, the amount was taken from your FSA but should have been deducted from your LPFSA, please reach out to Forma Support at email@example.com We will create a balance due under your FSA account and request you submit a new claim under your LPFSA account to be reimbursed.