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10 Questions About the Administration of Personal Funding Accounts

May 16, 2024

Personal Funding Accounts (PFAs) are very popular because they allow your employees to use pre-tax healthcare dollars when paying for qualified medical expenses. Examples of PFAs include, but are not limited to, the following: health savings accounts (HSA), health reimbursement arrangements (HRA), flexible spending accounts (FSA), and dependent care flexible spending accounts (DCFSA).

We want to make the process of administering these accounts as simple as possible. Therefore, here are the answers to 10 of the most frequently asked questions we get from employer groups relating to the administration of PFAs.

  1. Is there a guide or handbook to help me understand how to access our account and perform administrative tasks?

Yes, you can reference the Funding Account Employer Administration Guide here:

AK Small Group – Funding Account Employer Guide

AK Large Group – Funding Account Employer Guide

  1. How do I update an employee address, name, and all other demographic information?

All demographic information must be updated in the Premera system – please reach out to your Sales Professional or Membership & Billing analyst for assistance.

  1. What happens to an employee’s HSA if they terminate employment?

Optum Financial sends the account holder notification letting them know the following:

  • The employer no longer provides their account.
  • They can keep their account directly with Optum Financial.
  • How to access their account directly through the Optum Financial website.
  • They will receive a new payment card to access their funds.
  • The employee is responsible for any applicable fees.
  1. I have an employee who has a payment card expiring at the end of the month, when will they receive a new card?

Payment cards are valid through the last day of the month shown on the card. Replacement cards are generated and mailed approximately two weeks before the card is set to expire.

  1. Can a PO Box be used to open a Health Savings Account (HSA)?

No. PO boxes are allowed as a mailing address, however, a physical address must be provided to open an HSA account.

  1. What reports are available to review year-to-date (YTD) contribution amounts made to an employee’s account?

You can review the ‘Participant Accounts’ report from the PFA Employer Dashboard to review total YTD contribution amounts that have successfully posted into participant accounts for any given plan year. You can also review the ‘Contributions for an employee’ report to review successful contributions at the individual employee level.

  1. Why is the HSA contribution invoice less than what was submitted?

The ‘Contribution Rejection Report’ on the PFA Employer Dashboard itemizes any rejected contributions and allows the rejections to be reprocessed when the issue is resolved.

  1. I received an email that HSA contributions could not be applied. How do I determine the reason and who this might impact?

The ‘Contribution Returns’ report on the PFA employer dashboard provides details on who they are for, and all the contributions included in the return.

  1. I have an employee inquiring if they are eligible for a PFA, are there other resources available to assist?

Basic information about PFAs is available on the Personal Funding Accounts page on our website. You may also refer your employees to IRS publication 969 for additional information on eligibility requirements. The employee should consult with a tax advisor or professional specific to their situation.

  1. What is the Customer Identification Program (CIP)?

CIP is a validation process for bank accounts that is required under the USA PATRIOT Act. The Act mandates that all financial institutions obtain, verify, and record information identifying each person who opens an account. To understand the CIP process in more detail, please review the Customer Identification Program (CIP) guide.