How did the new debit card regulations affect me?
Your card transactions can be automatically substantiated without additional paperwork for transactions that are:
Copayments tied to your health plan up to a maximum five copayments per card swipe.
New transactions that match the provider and dollar amount exactly for previously approved transactions (e.g. orthodontia claims, maintenance prescription drugs)
Purchases made or services provided at merchants using an Inventory Information Approval System (IIAS). The IIAS system substantiates your Benefits Debit Card transactions at the point of purchase. IIAS will deny ineligible expenses, which will need to be paid using another form of payment. The good news - no more substantiation for eligible claims when a merchant has an IIAS in place!
Visit Discovery's web site home page for an up-to-date list of IIAS merchants.
The regulations will impact how you pay for day care expenses if your day care provider requires that you pay in advance. The Notice clarified that reimbursement can only be released for day care expenses that have been incurred. Advance reimbursement is not permitted. Participants who use the debit card for day care expenses and must pay in advance will want to check with their day care provider about the possibility of changing the payment schedule. Dependent care claims may continue to be submitted via fax, mail or online and claims will be reimbursed as incurred.
The IRS again confirmed that FSA expenses cannot be self-certified by the participant. If the expense does not fit within auto-adjudication categories (co-payment, IIAS, recurring expense from a previously approved transaction), the IRS requires the participant submit documentation to Discovery Benefits to substantiate the claim. This has been a long-standing requirement of flexible spending accounts and continues to be reinforced time and time again by the IRS.
Our Participant Services Team is ready to help answer any questions you have about this information or your flexible benefit plan in general. Participant Services can be reached at 866-451-3399, ext. 1 or by emailing customerservice@discoverybenefits.com.
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