A Flexible Spending Account (FSA) is a voluntary tax-favored program that allows you to pay for a variety of out-of-pocket healthcare and/or dependent care expenses through pre-tax payroll deductions. When enrolling, you determine how much money you want to contribute to each account. The money is then withheld from your pay before taxes are calculated providing you with more value for your dollar. Healthcare FSA participants will be able to use a special debit MasterCard® to pay their eligible FSA expenses. Healthcare FSA and Dependent Care FSA participants will also be able to manually file for reimbursement from your account.


New Brand for Flexible Spending Accounts

Beginning January 2024, PayFlex’s new name will be Inspira Financial. Inspira Financial will continue to serve as third-party administrator for all HCFSAs, DCFSAs, and HSAs. The website and communications will look different. Don’t worry! There’s nothing for employees to do during this brand transition.

All PayFlex-branded debit cards will continue to work through the expiration date identified on the card. Employees may receive an Inspira-branded card if a new card is requested before the expiration date, such as for a lost or stolen card. For questions, login to the website on the back of the debit card then go to “Help & Support”. From there, employees can access FAQs, chat with Inspira Financial, or send an email. Employees can also call the number on the back of a debit card for additional assistance.

Access Online Account: Click here to login or create a new profile. Employees with established PayFlex login credentials will continue to use the same username and password. For new FSA participants, click here to create a new profile. Inspira Financial will require your MasterCard debit card account number OR Social Security number to register a new online account.

How to Verify a Card Purchase: Inspira Financial requires substantiation documentation for most Healthcare FSA debit card transactions. 

Questions? Inspira Financial Contact Information: 1-844-729-3539 (TTY: 711), Monday-Friday 7:00 a.m. – 7:00 p.m. CT, and Saturday 9:00 a.m. – 2 p.m. CT.


Healthcare Flexible Spending Account

The Healthcare Flexible Spending Account (HCFSA) provides a way to save significant amounts of money on your healthcare expenses. This account can be used to pay for eligible healthcare expenses incurred by you and eligible IRS tax dependents that are not covered by your medical, dental or vision insurance. The result is that you’ll save federal income tax, state income tax and Social Security tax on the amount you contribute to the account. The more you contribute – the more you can save! All HCFSA members will receive a debit card to access funds.

Annual Contribution Limit: The maximum annual pre-tax amount allowed for this plan is $3,050 for Plan Year 2024. HCFSAs are individual accounts, so if you and your spouse both work at UA and are eligible to participate in the HCFSA, then you may each contribute up to the annual maximum for your individual HCFSA (e.g., $3,050 + $3,050 for a total of $6,100 in 2024). 

Healthcare FSA FAQs

The Healthcare Flexible Spending Account can be beneficial for anyone who has eligible out-of-pocket healthcare expenses beyond what their insurance plans cover (i.e., cannot be paid by or reimbursed through any benefit plan). They can save by paying for these expenses with tax-free dollars. You must enroll and indicate how much to contribute within the first 30 days of hire, within 30 days after a qualifying event or during the annual open enrollment period. The amount you elect will be deducted from your pay in equal amounts depending on your pay schedule. After you enroll, you will receive a welcome letter from Inspira Financial with information about your account. You may be reimbursed your full HCFSA annual election amount prior to having the full amount of payroll contributions deducted and deposited in your account. You do not have to enroll in a medical plan to participate in the HCFSA.
Many people find Healthcare FSAs a cost-effective way to pay for health plan deductibles/coinsurance/copayments, eyeglasses, contact lenses, prescriptions, orthodontia, and other health-related expenses that are not covered by insurance. Even if you do not itemize deductions on your tax returns, you can take advantage of this tax break by using the HCFSA. IRS Publication 502 provides an extensive list of eligible medical and dental expenses.
The Inspira Financial debit MasterCard® is the easiest and best way to access the money set aside in your HCFSA account. However, any charges paid for with a method other than the debit card, or if you are filing for eligible over-the-counter expenses, you must send a Request for Reimbursement form with appropriate documentation to Inspira.
It’s important to remember that all Flexible Spending Accounts have a “use-it-or-lose-it” rule. Unlike HSAs, FSA funds do not rollover from year-to-year. Employees enrolled in the Healthcare FSA have a three-month run-out period from Jan. 1 to March 31 of the following year to submit any previous year’s claims for reimbursement. Claims must be incurred during the previous plan year (i.e., claims incurred from Jan. 1 – Dec. 31, 2023 can be reimbursed until March 31, 2024). Any unused funds remaining in an FSA at the end of the run-out period will revert back to UA to help offset administrative costs.
Yes. The IRS requires Inspira Financial to verify that all FSA debit card transactions are for eligible medical or childcare expenses, a process also known as substantiation. When using your debit card to access funds from your FSA, Inspira has established certain systems and rules to automatically verify the funds were used for an eligible expense. However, sometimes Inspira can’t prove that the funds were used for eligible expenses. When this occurs, you will receive a “Request for Documentation” notice on the Inspira member website or letter by email or mail based on your account settings.
The best type of documentation to provide for substantiation is the Explanation of Benefits (EOB) from an insurance company showing the “final” amount owed. Inspira will also accept an itemized receipt including the following information:
  • Provider or merchant name,
  • Patient name,
  • Date of service,
  • Type of service or item description, and
  • “Final” amount you owe
It’s strongly recommended to keep all receipts, invoices, EOBs, etc. Inspira Mobile allows members to simply take a picture of a document and upload it through the app. Inspira Mobile also features an Eligible Expense Scanner for barcodes and a list of common eligible items. If your transaction is identified as not eligible for reimbursement then your FSA may be subject to correction procedures, including suspending the use of your debit card until the required documentation is received by Inspira OR the exact amount is paid back to your account.

Dependent Care Flexible Spending Account

The Dependent Care Flexible Spending Account (DCFSA) provides a way to save significant amounts of money on dependent care expenses. You can contribute to the account on a pre-tax basis and use the money to pay for eligible dependent care expenses during the year. The result is that you’ll save federal income tax, state income tax and Social Security tax on the amount you contribute to the account. The more you contribute – the more you can save! DCFSA will not receive a debit card, but may instead request claims reimbursement from Inspira.

Annual Contribution Limit: DCFSAs are household accounts, so if you and your spouse both work at UA and are eligible to participate in the DCFSA, the maximum contribution amount allowed is $5,000 if a joint tax return is filed, or up to $2,500 each if you file separate tax returns.

Dependent Care FSA FAQs

The Dependent Care Flexible Spending Account is generally beneficial to anyone who has a qualified dependent and pays for eligible dependent care expenses. They can save by paying for these expenses with tax-free dollars. Determine if your Dependent Care expenses qualify for FSA reimbursement. You must enroll and indicate how much to contribute within the first 30 days of hire, within 30 days after a qualifying event or during the annual open enrollment period. The amount you elect will be deducted from your pay in equal amounts depending on your pay schedule. After you enroll, you will receive a welcome letter from Inspira Financial with information about your account. You do not have to enroll in a medical plan to participate in the DCFSA.
Dependent care FSAs can be used to reimburse you for eligible expenses associated with the care of your qualified IRS dependents, as long as the expenses are incurred:
  • so you and your spouse can work or attend school full-time
  • for services relating to the care of a dependent child under the age of 13 or your dependent or spouse who is physically or mentally incapable of self-care and who lives with you for more than one-half of the year
  • for dependent care services provided during the plan year while employed with the University.
Reimbursements from the DCFSA cannot exceed the amount deposited in your account at the time your reimbursement is processed. Eligible expenses include:
  • licensed nursery school and daycare facilities for children, or
  • childcare in or outside your home, or
  • daycare for an elderly disabled dependent
IRS Publication 503 provides an extensive list of eligible and ineligible dependent care expenses.
Dependent Care FSA participants will not receive a MasterCard ® from Inspira Financial. You will need to send a Request for Reimbursement FSA form with the appropriate documentation to Inspira Financial in order to be reimbursed.
It’s important to remember that all Flexible Spending Accounts have a “use-it-or-lose-it” rule. Unlike HSAs, FSA funds do not rollover from year-to-year. Employees enrolled in the Healthcare FSA or Dependent Care FSA have a three-month run-out period from Jan. 1 to March 31 of the following year to submit any previous year’s claims for reimbursement. Claims must be incurred during the previous plan year (i.e., claims incurred from Jan. 1 – Dec. 31, 2023 can be reimbursed until March 31, 2024). Any unused funds remaining in an FSA at the end of the run-out period will revert back to UA to help offset administrative costs.
Yes. The IRS requires Inspira Financial to verify that all FSA transactions are for eligible childcare expenses, a process also known as substantiation. If Inspira cannot automatically verify that funds were used for eligible expenses, then you will receive a “Request for Documentation” notice on the Inspira member website or letter by email or mail based on your account settings.
Inspira prefers accept an itemized receipt including the following information:
  • Provider or merchant name,
  • Patient name,
  • Date of service,
  • Type of service or item description, and
  • “Final” amount you owe
It’s strongly recommended to keep all receipts, invoices, EOBs, etc. Inspira Mobile allows members to simply take a picture of a document and upload it through the app. Inspira Mobile also features an Eligible Expense Scanner for barcodes and a list of common eligible items. If your transaction is identified as not eligible for reimbursement then your FSA may be subject to correction procedures, including suspending the use of your account until the required documentation is received by Inspira OR the exact amount is paid back to your account.

Connected Claims Solution

Inspira Financial (previously PayFlex) utilizes a Connected Claims Solution to help manage your FSA debit card expenses. If you are covered by UA’s BlueCross and BlueShield of Alabama medical and/or dental plans, then Connected Claims allows you to view your medical and dental claims data all in one place in the Inspira Financial online dashboard. Vision claims from United Healthcare are not included in this solution.

How does it work? BlueCross sends a weekly secure file feed to Inspira Financial. It shares a copy of the data from your Explanation of Benefits (EOB) which is the preferred form of documentation to substantiation your FSA expenses. As a result of Inspira Financial’s enhanced verification, you should not have to upload additional documentation once the medical or dental claim is processed and sent by BlueCross.

What are the limitations? Connected Claims works only if the subscriber on UA’s BlueCross medical and/or dental contract is the same person as the primary FSA account holder with Inspira Financial. The secure file feed is connected by the subscriber’s Social Security Number. For spouses both employed at UA, if one spouse is the subscriber for medical insurance and the other spouse is the FSA account holder then Connected Claims will not be able to help with substantiation. The same limitation applies if you are not covered by UA’s medical and/or dental plan, and only enroll in the standalone Healthcare FSA. In these cases, you will still be required to provide documentation to substantiate FSA debit card expenses.


Additional Information

For questions concerning claims incurred on or after January 2024, please contact:
Inspira Financial Customer Service (previously PayFlex): 1-844-729-3539, www.inspirafinancial.com