Flexible Spending Q & A ~ The IRS sets all rules and regulations for FSA Plan. Aflac does not have control over how the FSA works, they just administer the benefits. All groups must follow the same rules and regulations.
~Using the Aflac Now Card allows you to pay for covered expenses with out having to reach into your own pocket. You may be required to provide supporting documentation for the transactions, so always keep a receipt. Before the Aflac Now Card, you would have to send in your receipts and wait for reimbursement.
~ A credit card receipt does not give the details needed by the IRS to show a ‘medically necessary’ transaction. You can purchase non medically necessary items at many of the same locations. The receipt should be detailed from the provider of the service. A
credit card receipt does not show who had the service and what service was provided. For example, for prescriptions the best documentation to send in is the page stapled to your bag. This shows the name of the patient, Doctors name, drug name, pharmacy name etc.. The IRS needs to know that the services or medications were for you/ your family and not a neighbor.
If I use my card at Walgreens it always works, if I go elsewhere Aflac requests I submit a receipt, why is this? Are there certain pharmacies that accept the Aflac card and others that do not? Each Merchant is assigned a Merchant Category Code (MCC) that identifies that type of merchant. For example if you use a pharmacy at a grocery store, they may or may not have a separate MCC code at the pharmacy identifying them as a Pharmacy, and not a Grocery Store. They must have a Health Care code, not a Grocery Store code.
In my providers office they swiped my card for the balance due, but then Aflac requested the backup receipt. Since Aflac has our schedule of benefits on file why they do ask for this information? IRS regulations require Aflac to monitor all transactions with documentation that all funds are being used for Medically Necessary Items only. Aflac does NOT have a schedule of benefits on file for groups that have HSA Medical Plans. There are no Co pays etc for them to refer back to when all expenses are out of pocket. They need to know that your expenses were medically necessary, and not cosmetic.
I purchased my eyeglasses with my card at Pearle Vision and was still requested to submit receipts. Again, the IRS requires documentation that the funds used were for Medically Necessary items. You can purchase non prescription glasses & sunglasses at Pearle Vision, which would NOT be covered expenses.
~All correspondence from Aflac will reference your ‘Date of Service’. All letters from Aflac asking for additional documentation will be tracked based on your date of service, and not the actual service or amount paid. You can also register and log onto www.aflac.com to view all of your policies and FSA information, it will tell you if you need documentation faster than waiting for the snail mail, but it will still reference the date of service. ~Dental Claims are handled the same way. Your documentation must have the Dental Procedure Codes. These are universal codes used by all dental facilities. Again, this is needed to show that the service was medically necessary and not for cosmetic purposes.
