IRS clears up questions on use of FSA debit cards.(News)(Internal Revenue Service)(flexible spending accounts)(health reimbursement arrangements )

Business Insurance, July, 2006 by GEISEL, JERRY

Byline: JERRY GEISEL WASHINGTON-Internal Revenue Service guidance on using debit cards with flexible spending accounts and health reimbursement arrangements clears up questions that have arisen since the IRS first issued rules for the cards. Additionally, the guidance, which was published last week, goes beyond debit cards.

For example, the guidance makes it clear that employees with FSAs or HRAs can't "self-certify,'' such as by checking a box on a third-party claims administrator's Web site, that an expense is medically related. The guidance also makes clear that certain common transactions, such as reimbursement from an FSA or HRA for a copayment made for a doctor's office visit, can be handled, in certain situations, without additional paperwork....

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