HSA and FSA Card Payments

In Healthie, you can charge clients for packages and services. This is done through our integration with Stripe that connects your business bank account to your Healthie account. Our direct integration with Stripe eliminates the need for any 3rd party logins or payment processors -- you'll be able to accept payments and charge for services right from your Healthie account. 

HSA/FSA cards can be treated just like credit cards. Health Reimbursement Accounts and Flexible Spending Account cards can be treated just like credit cards through the billing platform. Stripe's standard processing fees of 2.9% + $0.30 will apply as normal. Please go to Billing > Client Packages and process these as you would a normal credit / debit card. Learn more about payments through Healthie

About HSA & FSAs: 

  • A FSA Debit Card is a special type of debit card issued in the United States to access tax-favored spending accounts such as flexible spending accounts (FSA) and health reimbursement accounts (HRA), and sometimes health savings accounts (HSA) as well.
  • Clients that have high-deductible health insurance plans will typically have HSA accounts. In this case, clients will use their HSA to pay towards their deductible (out-of-pocket payment required before insurance starts covering  healthcare expenses). On top of this, a client may add additional dollars to their HSA for more planned healthcare spending, to save on post-tax expenses.

Reasons for Declined HSA/FSA Transactions

There are several reasons why your client's HSA/FSA cards are declined, including:

  • Insufficient funds
  • Funds have expired or do not roll over
  • Card has not been activated / set up by the client for utilization
  • Some HSA/FSA cards only cover limited types of medical care, and your service, based on your unique medical merchant code, is not covered by the card provider. 

Troubleshooting Declined HSA/FSA Transactions

Here are some additional steps you can take when receiving a declined HSA/FSA transaction:

  • We recommend reaching out to your client, to ensure that their card has been activated and has funds that are eligible to be utilized. 
  • If your client's HSA/FSA has been declined, you may want to send them an invoice through Healthie. Clients can print their invoice and submit it to their HSA/FSA provider for possible direct reimbursement. 
  • You can also visit our blog post to read more about accepting HSA/FSA cards in your practice. 

Stripe Account Merchant Code

When you set your account up in Healthie for payment processing, a Stripe account is automatically created on your behalf. Healthie works with Stripe to maintain this account, and make any required updates. 

A Merchant Code (MCC) is automatically set for each Stripe account. In general, a Merchant Code of 8099 (medical services) will be properly configured to accept HSA/FSA cards. By default, Healthie attempts to set an MCC of 8099 for all provider accounts. However, the code designation is reviewed by Stripe. HSA/FSA cards are heavily regulated and Stripe can only legally assign a medical code of 8099 to licensed healthcare providers. 

Life coaching (nutrition, weight loss, etc) service is typically not an HSA qualified expense, so Stripe is not able to configure this account to accept these cards.

Services covered by HSA/FSA can vary, but for a quick overview of what types of purchases are covered, you can review this link: https://www.irs.gov/pub/irs-pdf/p502.pdf

If you are experiencing issues with HSA/FSA transactions, and want to confirm your Stripe Merchant Code, please email hello@gethealthie.com. Healthie can work with Stripe to adjust the MCC for your account, if your business meets the qualifications set forth by the IRS. Healthie will need a valid business website in order to adjust/update your MCC.

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