BAS provides flexible spending account claims review and processing for FSA clients. As part of its FSA administration, BAS offers employers the ability to provide employees with a debit card for health FSA expenses.
In some cases, an expense paid with the debit card can be automatically substantiated at the point of sale (for example, when the card is swiped for a copayment under the plan). In other cases, the expense must be substantiated with documentation after the fact. BAS assists employers in satisfying their Internal Revenue Code requirements for substantiating FSA expenses paid with a debit card. BAS has established the following process for a participant who uses the Benny Card for an expense that cannot be automatically substantiated at the point of sale (e.g., is not a pre-loaded medical copayment amount):
- Benny Central will send a First Request for Receipts notice to the participant asking for supporting documentation for an unsubstantiated expense. If a valid email address is entered into MyEnroll.com for the participant, the letter will be sent by email (from @bennycentral.com). If there is no email address associated with the account, the letter will be mailed to the participant's home address.
- The participant will have 30 days to respond to the First Request for Receipts. If a response is not received within 30 days, the participant will receive a Second Request for Receipts again asking for supporting documentation.
- The participant will have 30 days to respond to the second request for documentation. If a response is not received within 30 days (60 days total), the participant's Benny Card will be suspended and the participant will receive a Card Suspension Notice again asking for supporting documentation.
- The participant's Benny Card will remain suspended until adequate documentation is provided or until the participant repays the account with after-tax dollars.
- If additional documentation is provided, that documentation will be reviewed to determine if the expense may be properly paid from the FSA. If it is determined that the expense may be properly paid from the FSA, the claim will be substantiated and the Benny Card will be reactivated.
- If after review of the documentation, it is determined that there is not sufficient information to substantiate the claim, the participant will be sent another notification requesting more information. The participant will have 30 days to respond to the request for more information.
- If, based on all of the information provided, it is determined that the expense is not an eligible expense, the participant will receive a notice asking the participant to send a check in the amount of the expense to reimburse the FSA. When BAS receives the repayment and returns it to the employer to reimburse the FSA for the ineligible expense, the participant's account will be credited and the Benny Card will be reactivated.
- If the participant does not respond to the Benny Central notifications within the identified time frames, or if the participant does not repay an expense that is determined to be an ineligible expense, the Benny Card may be permanently suspended and will not be reactivated.
Please note that participants may continue to submit paper claims while the Benny Card is suspended.
For more information about BAS’ flexible spending account plan administration including use of the Benny Card, please contact your account manager or info@BASusa.com.
