Debit Card Regulations

The Internal Revenue Service (IRS) now requires grocery stores, discount stores, supermarkets, wholesale clubs and mail-order merchants to identify eligible healthcare items at the point of sale. As a result, many retailers have implemented systems that meet these new regulations. When you use your Debit Card at these retailers, most times you will no longer need to submit documentation after your transaction. A link to a list of participating retailers and their projected implementation date appears is at the end of this page. Please be aware the BenefitsWorkshop has no control over the actions of these retailers.

We strongly advise you to always obtain a detailed receipt when you use your Debit Card. Although the type of transactions requiring documentation will be reduced, the need for documentation has not been eliminated. Also, transactions that occurred before the system was implemented still require acceptable documentation*.

What is acceptable documentation?

The IRS requires that you provide detailed documentation for all debit card transactions that are not standard prescription copayments or medical office visit copayments as defined by your employer’s medical insurance plan, or transactions that are approved at the cash register by retailers meeting IRS guidelines (see the list below). Acceptable documentation includes a detailed receipt from a medical provider or retailer showing at a minimum, the date of service or purchase, the nature of the service or purchase, the amount you paid. You may also submit an Explanation of Benefits from an insurance plan as documentation. Simple credit/debit card receipts without the above information are not acceptable.

Frequently Asked Questions

Q - Do I need to change pharmacies if mine is not on the list?
A - No. The new IRS regulations only apply to grocery stores, discount stores, supermarkets, wholesale clubs and mail-order merchants. Retailers who have credit card terminals that are coded as pharmacies will still follow the standard documentation guidelines.

Q - Is there any change to transactions at doctor's offices and hospitals?
A - No. Normal documentation guidelines still apply.

Q - What should I do if I am making a purchase at a retailer not included on this list?
A - If you are purchasing eligible items at a non-participating retailer, your Debit Card will not work. Pay the expense another way and get a detailed receipt. You can submit the receipt with an Expense Documentation Form and we will be happy to reimburse you.

Q - How do I know if my transactions require documentation?
A - We periodically contact participants regarding their pending transactions. You can also log in to the Debit Card website to view your transaction and balance information. A link to the Debit Card website, as well as instructions for creating your online account, are available on the main page.

Copyright 2009. All rights reserved. BenefitsWorkshop services are provided by JAG Enterprises, LLC.