Q.- A participant in our health flexible spending account plan needed to visit a doctor when on vacation in Mexico. He only has his credit card receipt from the visit and he can’t get in touch with the doctor to get any additional documentation. Can we reimburse his charge?
A. Not according to the IRS’ substantiation rules for health flexible spending account claims. While a medical expense incurred in a foreign country is eligible for reimbursement from a FSA, the expense must be properly documented. There is no exception to this requirement for foreign claims. A credit card receipt does not include all of the elements required for substantiation.