Flexible spending participants,
You may have noticed a series of messages from Burnham and Flower/Acrisure regarding flexible spending and providing receipts. A message from Amber Howes on May 28 should have reached you, and it is duplicated below. In sum, only claims occurring on/after May 1, 2025 need to be substantiated. Your HR team expects flexible spending communication and processes to return to acceptable levels immediately. Please reach out to hr.benefits@kzoo.edu if you experience is something different.
In good health,
Renee Boelcke and Miasha Wilson
Kalamazoo College FSA Participants:
As you are aware, new claims substantiation requirements were recently implemented for your FSA plan. Beginning with claims incurred after May 1, 2025, you will be required to substantiate your FSA expenses.
WHY NOW?
The IRS requires participants with health care and dependent care FSA plans to provide claims substantiation to their employer or TPA to receive reimbursement.
WHEN IS SUBSTANTION REQUIRED?
The IRS requires substantiation for every claim including card swipes. However, if certain conditions are met, the claim may be auto-substantiated at the point of sale and additional documentation will not be required.
Claims can be auto-substantiated in the following circumstances:
- When using a debit card at a health care provider (including dental and vision providers)
- Copayment matching – If the card swipe matches the known copayment of the respective health plan, the claim will be auto-substantiated for charges in the amount of the copayment.
- Recurring expenses – If the FSA participant has claims on a recurring basis in the same dollar amount, from the same provider, the claim will be auto-substantiated after the first claim is substantiated.
- For debit card purchases made through an inventory information approval system (IIAS) –IIAS is a point-of-sale technology that select merchants use that identifies transactions are eligible under an FSA or HRA. Ideally, all card swipes at an IIAS merchant would be auto-substantiated but there will be times purchases from these merchants will still require substation. When a card swipe occurs, data is transmitted to us indicating the swipe is for an eligible expense. However, there are times that IIAS substantiation fail to go through and participants will receive a request for documentation.
HOW DO YOU SUBSTANTIATE CLAIMS?
Submitting documentation is a necessary part of receiving a tax-advantaged benefit and we try to make it as simple as possible.
First, save your receipts!
Second, use the Portal (bfgroup.wealthcareportal.com) or Mobile App (App Store – Burnham & Flower Group Mobile) to easily submit documentation. Simply upload your receipt from the merchant or service provider that includes the following information:
- Date of service
- Description of service
- Name of provider
- Dollar amount charged
This information is generally available on an itemized receipt, statement from a provider, or an Explanation of Benefits (EOB) from an insurance carrier. You are encouraged to hold on to your itemized receipts/documentation with your annual tax records for proof the card was used correctly. If you ever receive an IRS tax audit, you will need to document all medical expenses. It is recommended you retain copies of this documentation with tax records for up to seven years.
We are deeply sorry for the confusing emails regarding these updated procedures and pending transactions over the last several months. We are committed to improving communication with our participants and look forward to providing you with clear and meaningful communication and resources in the months ahead.
Please do not hesitate to reach out to Amber Howes ahowes@acrisure.com or our Acrisure Claims Advocate, Sandy Reid, at sreid@acrisure.com or 269-341-9212 with any questions about your FSA plan or the claims substantiation requirements.
