Verifying FSA Expenses When Using a Debit Card

Employers often provide prepaid benefits cards to their Healthcare Flexible Spending Account participants to allow automatic payment to service providers for eligible medical expenses at the time of service or point-of-sale. The cards reduce administrative and participant worries as certain claims may be paid without any additional substantiation due to auto-adjudication. However, not all claims can be auto-adjudicated. When a claim cannot be auto-adjudicated, additional documentation is requested from the third party administrator in order to verify that the item or service is an eligible medical expense. This documentation must include the name of the person who incurred the service or expense, the name and address of the provider or merchant, the date of service for the amount charged, a detailed description of the service, and the amount due for the service provided. Participants are to keep their receipts and other documentation in order to fulfill this request.