HomeResourcesArticles
March 28, 2019

3 Tips to Help Stop Those Pesky “Documentation Needed” Requests

If you have a Flexible Spending Account (FSA) or a Health Reimbursement Account (HRA), it’s likely you’ve received an email requesting a receipt for a purchase you made – even for an expense that was perfectly eligible. You may be asking yourself, “Why was my card approved but now you want me to prove my expense was eligible?” Great question!

Think of it like game night at grandma’s house. You play at grandma’s house, you play by grandma’s rules. Only in this situation, grandma’s house is the IRS. The IRS lets you use funds in your FSA/HRA tax-free. In exchange, you have to play by their “house rules” (i.e. provide proof that you bought an eligible product).

Back to your earlier question. Your Ameriflex debit card works at stores where a majority of the products sold are eligible. As you know, most stores sell a mix of eligible and ineligible products (i.e. candy and birthday cards).

When you buy something with your Ameriflex card at one of these stores, your card gets approved assuming you purchased an eligible item. Makes sense. The only problem is, not all stores have a system in place to tell us WHAT you purchased with your card. Most doctor’s offices and eyeglass providers offer products that aren’t eligible, such as non-prescription sunglasses and concierge fees for white-glove treatment. As a result, you may be asked to provide a receipt to confirm the item or service you purchased was eligible. If you visit a doctor, dentist, or eyeglass provider, always request an itemized receipt.

How to Reduce Substantiation Documentation Requests

The key to receiving fewer requests for documentation is where you buy your product, not what you buy. If you use your card at an IIAS merchant, it’s less likely we’ll ask you for a receipt. Stores with an Inventory Information Approval System (IIAS) identify eligible expenses on the spot. Click here for list of certified IIAS stores.

To reduce receipt requests when shopping at an IIAS merchant, follow these steps:

  1. Pay for the eligible expenses first using your Ameriflex debit card
  2. Pay for the remaining ineligible items separately using another form of payment
  3. Always save your receipts just to be safe

 

Need help with a pending transaction? Click here to get in touch with our team.

What’s in this article?

Other Recent Posts
What is the Transportation Benefits Program Act? The State of Illinois recently passed the “Transportation Benefits Program Act” that will go into effect January 1, 2024, and require employers with 50 or more employees located in specific areas to offer a pre-tax commuter benefit to “covered employees.” Employees who take advantage of the benefit can...
SPD WRAP Ultimate Guide
July 10, 2023
What you need to know about SPD WRAP A Summary Plan Description (SPD) is an ERISA requirement for most employers offering group benefits. It’s the document that outlines the details and terms of a group’s health plan in understandable language for all eligible plan participants. ERISA guidelines dictate what information is to be included, to...
It’s true that Health Savings Accounts can pay for medical expenses now, but the most powerful tax advantages and benefits come from saving the balance for later, even into retirement. With the growth in HSA popularity over the last few years, anyone looking for employee benefits has read about or heard of the triple-tax advantage...
Stay Updated

Join us to stay on top of the latest healthcare news, legislation and product features from Ameriflex

We value your privacy
We will not rent or sell your information