Dependent Care Reimbursement

[Guest MSMA]

Hello again...the question I have today is this:

When adjusting claims for daycare expenses, our policy has alway been the same as for medical expenses: Claims can only be reimbursed AFTER the expense has been incurred (dates-of-service NOT date-paid). HOW would you suggest handling pre-registration fees for summer daycare programs? Often the provider requires the registration fee over a month before the program begins. To complicate this more, most of our accounts have a July through June year...which means the pre-reg fee is required in one year and the dates-of-service fall within the following year. And to play devils-advocate...are registration fees even eligible since they are not the actual fee for care?

I look forward to all of your replies. Thanks!

[jpod]

I'm taking a shot in the dark at this without looking at the regulations, but I would say (1) the registration fees are eligible if they relate solely to the program of care and if the fees for the program itself are otherwise eligible, and (2) the registration fees should be considered "incurred" over the period the care is provided, to the extent not refundable. So, if the child is pulled out of the program after one day, any non-refundable registration fees and other costs which are non-refundable should qualify.