Why do I need to substantiate my Benefits Debit Card purchases?

When you use your Discovery Benefits Debit Card to pay for expenses eligible under the flexible benefit plan at non-IIAS health care merchants, Discovery Benefits receives limited information from your card purchase. That information includes: the date the card was used, the place the card was use, and the dollar amount. Since the IRS requires more than this to properly substantiate an expense, Discovery Benefits may follow up with you to request more information about the expense in order to support the eligibility of the purchase.

When requested to submit additional substantiation, please provide documentation that includes the original date of service and the type of service. If the item is covered under your insurance plan, please provide information on how much of the cost of the service your insurance plan covered (such as an Explanation of Benefits or a breakdown of charges from the vendor).

It is important to save your receipts from your card purchases in order to provide them to Discovery Benefits upon request. Use the Receipt and Substantiation Form or a copy of the letter we sent to you as a cover page when faxing and mailing in your documentation.

When your card is swiped Discovery Benefits reviews the card swipe to see if it matches a previously approved transaction (recurring expense) or if it matches your plan's co-pay amount. In these cases, you will most likely not be asked to provide additional information.

No additional substantiation is required for debit card transactions that are approved at merchants using IIAS. IIAS approves eligible medical expenses at the point of purchase matching the item?s SKU to a list of eligible expenses. IIAS will require a second form of payment for ineligible expenses. For a list of merchants visit Discovery?s web site.

A reminder that beginning January 1, 2009, the debit cards may not be used at pharmacies that do not have IIAS in place.

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