Top 3 Ways to Make the Most of Your Flex Card
Many employers offer the use of a flex card along with their pre-tax benefits. The flex card can add a level of convenience to the benefit, and here are some tips for how to make the most of your flex card.
- Save all documentation and receipts!
While the flex card is great for the convenience of paying for the expense at the point of sale or when your doctor’s bill is due, it does not replace or eliminate the claims process for the account. Transactions which are not able to be automatically approved, as allowed by the IRS, are required to be substantiated the same way as a paper or manual claim. When using the flex card, be sure and request an itemized statement for the charge. This is important so you have the documentation for your own tax records. Also, if you receive a request to provide documentation for a charge, you have the information available to submit.
- Use the flex card for prescriptions and copays.
Only using the card for prescriptions and copays with your employer’s insurance plan will drastically reduce the likelihood of having to submit documentation for your flex card charges. Prescriptions can be automatically approved when purchased from an Inventory Information Approval System (IIAS) approved merchant. Since the expense is approved at the point of sale, no additional documentation is required. Copay amounts for your employer’s insurance plan can also be automatically approved when the flex card is used.
- Use the flex card at IIAS approved merchants.
The IRS allows for the flex card to be used at merchants who have implemented IIAS. This allows for only eligible expenses to be used on the card. Ineligible expenses will be declined and another form of payment must be used to purchase those items. Examples of eligible expenses which can be purchased at an IIAS approved merchant include prescriptions, first aid kits, contact lens solution and bandages.
Employees who know how to make the most of their flex card rarely require documentation to be submitted for their charges. The convenience of paying for an expense with the flex card combined with the proper know-how can truly help to make the most of your pre-tax benefit.
BusinessPlans, Inc. – myCafeteriaPlan does not intend to provide legal or tax advice and information contained in this article should not be interpreted as such. Regulations governing pretax plans are often open to interpretation and should be reviewed with your legal or tax advisor before making any decisions regarding your plan.