One of the most common frustrations employees experience is having an expense declined. This usually happens due to misunderstanding substantiation requirements, which is something that can easily be avoided.
Auto-Substantiation
Most qualified expenses are automatically substantiated when purchased from approved merchants or providers. This includes common expense categories like copays and recurring medical costs.
Using your Benefit Access Card for qualified purchases is the easiest way to take advantage of this process. Most cards are programmed to work only at approved locations, meaning no additional documentation is required. However, in some cases, you may still be asked to provide supporting documentation, so it’s best to keep your receipts until your transaction is confirmed.
Manual Substantiation
Some expenses will require manual review and documentation. To ensure smooth reimbursement:
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Review eligibility before purchasing. Review the IRS list of eligible expenses or the what's eligible tool.
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Keep your receipts. Retain itemized receipts that show the date of service, provider name, description, and cost.
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Submit the correct documentation. Some expenses may also require a Letter of Medical Necessity (LMN).
Taking the time to understand substantiation will help prevent declines and ensure your qualified expenses are approved or reimbursed without delay. Read more about FSA Substantiation here.
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