How do I know if I need to send in a receipt for my FSA Debit swipe?

It is very important to make sure that we have a current e-mail address that you check regularly to ensure that you are being notified of the card transactions. Whenever your card is swiped you should get an e-mail notification that your card was used, where it was used and the amount of the swipe. This is for security and also identity theft protection so that you know every time your card is used. If a swipe goes through the system and our software cannot match the expense to any of your insurance co-pay amounts, the system will send a second e-mail to the address we have on file for you. This e-mail notifies you that we were not able to match this expense to a co-pay amount, and it also did not match an IIAS approval code, so the swipe could not automatically adjudicate. This means that the card cannot tell what you purchased and if it is eligible. The IRS requires that every claim be independently adjudicated, either automatically at the point-of-purchase, or done manually in our offices.

Since the card cannot determine if this expense is valid or not, the system is requesting that we have a human look at that claim. To do this we need a receipt or provider statement showing the date of service, the nature of the services rendered, the costs for the services, and the providers name and address to determine if everything is in line with IRS guidelines. We ask that you fill out a claim form and submit that with your statement, receipt, or EOB so that we can review the expense. The second e-mail notification that you receive will alert you to the need to send in your receipts and claim form.

If it turns out that the swipe was for eligible services and/or items then we notify the bank that the swipe was in fact valid and ask that they “clear” the swipe. If we review the statement and the expenses are not valid under the guidelines of your plan, we will contact you directly to let you know that you will have to pay this money back into the plan. We also send notification to your HR department so that they are aware that you will be bringing in reimbursement for an ineligible swipe. We will not discuss the nature of the swipe in any manner with your employer. Your private health information is just that – private.

If it turns out that the expenses were ineligible, we will work with you to get the transaction resolved quickly to avoid any interruption in benefits. The next section covers this in more detail.

 

What if I use my card for an ineligible expense?

No one expects you to know every Section 213(d) eligible expense, and you may swipe the card for an expense that the IRS has not included in their list. The cards are set up to try to avoid the chance of ineligible swipes, but on occasion these accidents do happen. If you’ve used your card for an expense and it turns out that this expense was not eligible under the guidelines of your plan? You can pay that money back into the account that the debit cards pull from with an understanding that you cannot receive a tax-favored status for that item or service. When you do this, that money again becomes available to you for future eligible expenses.

There are several ways to pay this money back into the plan.

1. Login to your account at www.div125.com click on the tab with the debit card icon that looks like this.
2. Then click on Repay My Employer and follow the prompts. This “clears” your swipe and reactivates your card (if it had been turned off for failure to pay in a timely manner).
3. Bring a personal check or cash payment for the ineligible amount into your HR office.
4. Ask HR to see if you can make an after-tax payroll deduction.

Once we’ve received notification of the re-payment we clear the swipe from your account, credit those funds back into your available balance and if necessary reactivate your cards. If you use option 2 or 3 we will do these manually in our office and the card will be ready to use the next business day following notification to our offices of your request. If you use option 1 above and do it yourself at the website all these things happen automatically and you won’t have to wait for the card to become active again.