Depedent Care Substantiation

[Guest flexrh]

We are being challenged by an employer regarding our claims substantiation requirements for dependent care claims.

Is a cancelled, endorsed check adequate substantiation if the participant includes the dates of services and TIN on the claim form?

[papogi]

The regs state that the participant must provide a written statement from an independent third party stating that the expense has been incurred and providing the total amount of the expense [1.125-2 Q-7 (B)(5)]. A cancelled check with pertinent information written in by the participant technically does not meet that requirement. The provider should issue some sort of statement which shows the dates of service, the charges over those dates, the dependent’s name, and the TIN.