Must health FSA claims and dependent care claims be substantiated?
A. Yes. Starting in 1990 a health FSA and dependent care plan may reimburse an expense only if the participant provides a written statement from an independent third party stating that the expense has been incurred and the amount of such expense. In the case of medical expenses the participant must also provide a written statement that the medical expense has not been reimbursed, or is not reimbursable under any other health plan coverage. (Reg. Sec. 1.125-2 Q&A-7) Q.
