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An Employee Benefit News article states that more employers are learning what MedBen clients have known for some time now: Prepaid benefit cards are a smart accessory to many consumer-driven health products. Plan participants with a flexible spending account (FSA), health reimbursement arrangement (HRA) or health savings account (HSA) can use these special debit cards to make a variety of medical purchases, from paying physician bills to buying a bottle of cough syrup. And, many vendors now offer automatic substantiation, so card users do not need to provide a receipt to their employers afterward.
According to the article, employers that offer a debit card typically see a spike in plan participation, often doubling or tripling the number of employees who use their FSA or HRA. This in turn benefits employers by saving money on FICA taxes. You can read the full article here.
MedBen can provide prepaid benefit cards for FSA, HRA and HSA participants at the request of the employer. We also offer instructional materials for proper and effiective use of the card. Click here to learn more about our debit card services.