New Regulations And Software Upgrades For Debit Card Users
New regulations and software system upgrades allow detailed debit card transaction data to be submitted directly to BASIC for many debit card transactions. When this data is provided, BASIC uses it to adjudicate/approve debit card transactions so that participants do not need to send in documents to verify transactions. This email outlines how these changes will affect participant debit card use as of July 1st, when additional IRS regulations take effect. Please provide this information to participants.
Health Care Provider Offices:
The BASIC Debit Card will continue to be accepted at health care provider offices the same as it has been in the past. We advise debit card participants to only send verification documents for debit card purchases when BASIC requests them to be submitted. Participants will NOT need to send verification documents for transactions at health care providers when:
1) The total exactly matches one or multiples of the single co-pays, as indicated by the employer’s insurance plan, and
2) The insurance co-pay amounts have been entered into our administration system.
If the total sale amount does not exactly match one or multiples of the single co-pays, then documentation will be required. If BASIC needs to review the debit card transaction, the participant will receive a request for the documentation via mail or email (if available).
Pharmacies and Retailers – New Regulation:
As of January 1, 2008, IRS regulations (implemented through IIAS) prevent participants from using their BASIC Debit Card at retailers that are not IIAS compliant or to purchase ineligible items. As of July 1, 2009, IIAS has been expanded to include pharmacies. Therefore, the debit card may not be accepted at pharmacies that are not IIAS compliant even though the debit card had been accepted in the past.
The IRS regulation (implemented through IIAS) provides BASIC with detailed debit card transaction data on participant purchases so that BASIC can adjudicate/approve many debit card transactions without participants having to send in documentation. Therefore, we advise debit card participants to only send verification documents for their debit card purchases when BASIC requests them to be submitted. With this in mind, participants should keep all receipts for transactions made with their BASIC Debit Card just in case BASIC needs to review them.
Reasons why the BASIC Debit Card may not be accepted and related tips:
- The pharmacy or retailer may not be IIAS compliantReview the list of IIAS compliant merchants by clicking here.Participant can pay using another form of payment and submit a claim for reimbursement
Participant can choose an IIAS certified merchant next time
- In some cases, not all cash registers at a retailer or pharmacy are IIAS compliantWe suggest that participants pay for eligible items at the cash register at or nearest the pharmacy. This may be especially true at large department stores such as Meijer, Target or Wal-Mart.
- Only eligible expenses can be purchased with the BASIC Debit Card
We recommend participants keep all receipts when they have used their BASIC Debit Card just in case BASIC needs to review them. However, they only need to send in debit card documentation when BASIC requests them to be submitted for verification.
If you have questions regarding the new IRS regulations, please contact our FSA Department at 800-444-1922 ext 1 or our HRA Department at 888-472-0777.