Frequently Asked Questions (FAQs)

DataPath’s Insurance Payment Solutions are virtual and card based products that handle payment transactions to service providers and injured workers, often related to an indemnity payment. Learn more about Provider Payments and RenewCard.

An indemnity payment is compensation for damages or loss to one party (the insured) by another due to liability, such as workers’ comp.

An MSA is a trust that is established after an injured worker settles his or her workers’ compensation claim. After an assessment of the workers’ future medical needs, the government reviews the evaluation and approves a specified amount. The MSA account is designed to hold the approved funds in order for the account holder to pay for future medical and prescription drug costs related to the injury or illness. Account holders may receive a lump sum or structured annual payments.

MSAs are established if:

  1. You are a Medicare recipient settling a personal injury claim for more than $25,000, or
  2. You are not a Medicare recipient but have settled a personal injury claim for more than $250,000 and are expected to receive Medicare within 30 months of settlement.

Talk with your workers’ compensation counsel to determine if you are required to have an MSA account.

An MSA card is linked to the card holder’s MSA account and allows the card holder to pay for healthcare expenses with the MSA funds.

A service provider who handles the work associated with processing payment card transactions between the various entities including merchant, card issuer, banks, and merchant account providers.

Consumer-driven healthcare refers to employer-sponsored health plans that allow for an FSA, HRA, HSA, or other type of healthcare reimbursement account. This allows for consumer control over their personal healthcare by using set aside funds to pay for eligible medical expenses.

A Flexible Spending Account is a tax-advantaged benefit that may be part of an employer’s cafeteria plan. An FSA allows employees to set aside pre-taxable earnings in order to pay for qualified medical expenses or dependent care. Unused funds are generally not rolled over at the end of the plan year, though some HFSA plans allow carryover of up to $500 annually. FSAs are a component of consumer driven healthcare.

A Health Reimbursement Arrangement is a tax-advantaged component of consumer driven healthcare where an employer agrees to reimburse employees for employer-approved medical expenses. The employer contributes a predefined amount into an account for each employee, and the employee must file a claim to get reimbursed. The employer owns the account, which is not transferable.

A Health Savings Account is a tax-advantaged component of consumer driven healthcare that acts like a savings account for IRS-approved medical expenses. An HSA may be funded by any person, including the employee, employer, or another entity, and the end-of-year remaining balance rolls over to the next year. The account is employee-owned and is transferable. Account owners may invest their funds once the account balance meets a minimum threshold.

A Transit or Commuter plan is a tax-advantaged employer-sponsored benefit that allows for pre-tax payroll deduction by the employee in order to pay for the costs associated with commuting to and from work. Funds from a Transit/Commuter plan can be used for bus, subway, and train fare and parking fees.

The following lists 2016 IRS regulations regarding HSAs and HDHPs:

HDHP Minimum Deductibles:

  • $1,300 for individuals
  • $2,600 for family

Out-Of-Pocket Limits for an HDHP:

  • $6,550 for individuals
  • $13,100 for family

HSA Contribution Limits:

  • $3,350 for individuals
  • $6,750 for family

The following lists 2017 IRS regulations regarding HSAs and HDHPs:

HDHP Minimum Deductibles:

  • $1,300 for individuals
  • $2,600 for family

Out-Of-Pocket Limits for an HDHP:

  • $6,550 for individuals
  • $13,100 for family

HSA Contribution Limits:

  • $3,400 for individuals
  • $6,750 for family
  FSA HRA HSA
Owner Employee Employer Employee
Funded By Employee Employer Employee, Employer, or Other
Used For Dependent Care expenses

IRS-approved Health related expenses

Employer-approved Healthcare expenses IRS-approved Healthcare expenses
Account Requirements N/A N/A Must be enrolled in qualified HDHP
Contribution Limits Dependent Care – $5,000

Health FSA – $2,550

N/A Individual: $3,350 ($3,400 for 2017)

Family: $6,750

Investment Option N/A N/A Yes, once the balance reaches the minimum threshold
Balance Rollover Some plans allow for Health FSA carryover of up to $500 Yes Yes

A limited purpose HFSA and HRA are acceptable for use under the “permitted coverage” rules for an HSA. They are limited in that they may be used only for permitted coverage items such as vision and dental expenses until the required minimum annual deductible is met. A limited HRA could also provide a fixed amount of remuneration per day of hospitalization for specific diseases or illnesses.