|IRS Card Rules and Regulations
Submitting Mileage Claims
The IRS has changed mileage reimbursement rates for medical care effective 1/1/13 based on the date the service is incurred.
Please include the following information with your mileage claim:
Submit the claim for mileage along with a Pay Me Back claim or with the Explanation of Benefits (EOB). Claims will need to match the mileage reimbursement to a service and its date.
Many online mapping services will detail your route and mileage from home to service provider. This is helpful (but not required) in submitting mileage reimbursement claims.
What is IIAS?
IIAS is the common acronym for the IRS-approved Inventory Information Approval System. IIAS was introduced in 2008 and enables participating merchants to verify Card purchases right at the check-out counter. Since all stores (including pharmacies and drug stores) that sell general merchandise along with health care items must participate to accept the Card, it practically eliminates the need and hassle of having to submit receipts to verify the transaction after the purchase.
Can I use my Health Care Card at any merchant?
You can use your Health Care Card at health care providers and pharmacies for prescribed medicines. You can also use it for non-drug Over-the-Counter (OTC) items at merchants that have a standardized (IIAS) inventory system in place.
Where can I find a list of general merchandise stores that have an IRS-approved inventory system?
Do I need to submit receipts if I make a purchase at a merchant with an IRS-approved system?
No, you will not need to submit receipts if the merchant has an IRS-approved system. Only eligible health care items can be purchased with the Card at the point of sale. WageWorks will validate these Card transactions, however, you still need to keep the receipts for IRS audit purposes.
What happens if I use my Health Care Card at a merchant that does not have the IRS-approved system in place?
Your Card will only be accepted at general merchandise stores that have an IRS-approved inventory system in place. Your Card will be declined at any general merchant that does not have the system. If declined, you simply pay for your purchase and submit your receipt to WageWorks for reimbursement.
I heard that some supermarkets, grocery stores and wholesale clubs are able to accept the Health Care Card even though they do not have the IRS-approved system. Why?
Prior to July 1, 2009, some supermarkets, grocery stores, and wholesale clubs made use of a special exemption that enabled them to accept the Card at their pharmacy windows but not at their general checkout lines. After July 1, 2009, all stores that sell general merchandise, including pharmacies and drugstores, will be required to have an IRS-approved inventory system to be able to accept your Health Care Card. That means if the store or pharmacy does not have the system, they will not be able to accept your Card.
Why do I need to submit a receipt after using my card?
When you use your Health Care Card at a health care provider, we attempt to verify your transaction without asking for more information. If we are unable to do so, you will be asked to submit receipts for verification.
If I have a letter of medical necessity to purchase a non-eligible OTC item, will I be able to pay for it with a Health Care card?
The IRS approval system will only allow the standard list of eligible OTC items to be purchased via the Card. Any items that are not on this list will require a letter of medical necessity and will need to be paid for with another form of payment and reimbursed via a Pay Me Back Claim Form.
Download the Letter of Medical Necessity form
Starting July 1, 2009 pharmacies and drug stores* will be added to the list of merchants required to have an IRS approved inventory system in place to be able to accept the WageWorks Health Care Card.
Now everywhere you shop with the Card for FSA eligible over the counter items and prescriptions must have the IRS-approved system. Please visit www.sigis.com (or go directly to www.sig-is.org) for the most up-to-date list of approved merchants and www.wageworks.com/card for tips and guidance on using your Card.
This IRS revision is an expansion of the 2008 rule that required all non-health care merchants, such as supermarkets and warehouse stores, to have the same inventory system. These systems ensure that the Card is only used for eligible items, which eliminates guesswork and the need to submit receipts for verification after a purchase.
You will still be able to use your Card at a health care provider, such as a doctor's or dentist's office, but if you do, you will most likely receive a Card Use Verification form requesting documentation with your WageWorks account statement.
You may also be able to use your Card at select pharmacies that sell primarily health care items and prescriptions, as the IRS has allowed an exemption that will enable some of these pharmacies to accept the Card without the IRS-approved system. If accepted, Card purchases made at these pharmacies will require verification.
Please remember to keep the receipts for all your Card purchases and use the CUV form at the front of your statement to resolve all unverified Card transactions.
* Includes online pharmacies and mail order suppliers.
What do I do if my Card stops working at my online pharmacy after July 1, 2009?
If you are unable to use your Card at your preferred online pharmacy, you may pay for your purchase using another method of payment and send in the Health Care Pay Me Back claim form, along with an itemized receipt, to be reimbursed for your eligible purchases.
If I use my Card after July 1, 2009 at a store or pharmacy and it works, do I still need to save my receipts?
You should always save your receipts for tax purposes. Although we attempt to verify your Card transactions at the point of service, in some cases, we may still need to ask for a detailed receipt listing what you purchased, the date of the service or purchase, and the amount you paid.
If I use my Card to pay for my visit at the doctor's office, will I need to submit receipts?
Please save all your receipts, monitor your account, and watch for a Card Use Verification form. We attempt to automatically verify your Card transactions, but if we are not able to do so, the transaction will be listed on the Card Use Verification form at the front of your monthly account statement.