The card is to be used only for qualified expenses. How is it verified?
The IRS requires that your plan service provider verify all card swipes. Certain swipes are automatically verified. For example, if your card is swiped for a co-pay at a doctor’s office, you are not asked to provide a receipt. The same is true when a co-pay is made at the pharmacy. If, however, you present the flex plan card to make a pharmacy co-pay and to purchase a bottle of aspirin (or other over-the-counter health care items), you are asked for a copy of the card receipt. Here’s why. If the total amount of a card swipe does not match your co-pays, the IRS requires that all details on each receipt be verified as qualified plan expenses. On the other hand, you are not asked to submit a receipt when you shop at one of our retail partners such as Wal Mart. That’s because their systems only allow a qualified plan expense charge on your flex plan card. Therefore, when your shopping basket contains both qualified health care items and other merchandise, your transaction is automatically
