Employers using BAS for flexible spending account plan claim reimbursement management may wish to remind employees about the documentation needed to submit a claim. BAS reviews claim submissions and uses employers’ plan guidelines, along with IRS rules, to determine if a claim is eligible for reimbursement.
Documentation Needed with Claim Submission
Health Care FSA
When submitting a claim for reimbursement from a Health Care Flexible Spending Account or Health Reimbursement Account, a participant must provide documentation of the qualified expense.
An acceptable health care FSA claim should include:
Supporting Documentation
Supporting receipts, EOBs or billing statements must be submitted with the completed and signed claim form. Supporting documentation must contain all of the following elements to be considered adequate documentation under IRS rules. Credit card receipts and/or cancelled checks are not adequate documentation.
Medical Service – (An itemized statement or an EOB from the insurance company or health care provider that contains the following)
Medical Item
Prescription
OTC Drug or Medicine
Dual Purpose Item
If the item has both a medical and a non-medical purpose (a massage, nasal strips, vitamins, or compression socks, for example), a Letter of Medical Necessity from the participant’s doctor should be submitted confirming that the item is for medical care.
To be acceptable, a Letter of Medical Necessity must include:
Dependent Day Care FSA
When submitting a claim for reimbursement from a Dependent Day Care Flexible Spending Account, a participant must submit a completed BAS Dependent Day Care FSA Claim Form, along with appropriate receipts showing the expense was incurred for an eligible dependent.
An acceptable Dependent Day Care FSA claim should include:
Supporting Documentation
If the Provider does not sign and date the completed form attesting to each expense, supporting bills/receipts must be submitted with the completed claim form. A bill/receipt must contain all of the following elements to be considered adequate documentation under IRS rules. Credit card receipts and/or cancelled checks are not sufficient.
Employers using BAS for FSA services can remind participants of claims submission guidelines.