Attention: Flexible Spending Account Participants
There have been some questions about the use of the Visa card issued with your unreimbursed medical account by BPC, our third party administrator for the program. Below is some clarification.
BPC is required to follow certain guidelines set up by the IRS with respect to the FSA plan. The reason for the IRS guidelines is because the money put into the Flex Account is all pretax so the government places strict rules on the pretax dollars. We are required to substantiate card transactions which means that the system is set up to automatically request documentation for card purchases other than standard copayments and prescriptions purchased at a pharmacy that has their inventory coded to only allow eligible items to be purchased with the card (i.e. Walgreens and CVS). Two of the most important things that we look at on the documentation is the date of service and services provided to make sure that the expense was incurred inside the current plan year and that the service was an eligible expense, so the documentation must have these two items on it as well as the amount that was charged or the participants portion of the bill stated on the receipt. Once a card transaction posts on the account, the system generates a letter requesting documentation. A reminder letter will continue to generate once a month after that until the documentation is received. There is a 90 day period after the card is used to get the documentation to us before the system temporarily inactivates the card. If insufficient documentation is received there is a 30 day period after that to get the documentation sent in. Again, this rule is not one set up by BPC.
It is advised when the card is used to pay for an office visit to wait until the insurance has been billed, the claim paid by Mutual Medical, and a bill received from the offices showing the payment from Mutual Medical. That way you will not run the risk of paying for services that were covered by insurance. If that double payment does occur, the participant would need to repay their FSA and the money will be added back into the plan for future purchases.
If you have any questions please contact us in the Benefits office at ex. 5398.