Prescription Documentation

[Guest maya24]

We have taken over a group from another company. They allowed the claimants to use a cash register receipt for documentation where we asked for the actual Rx tag from the bag. Is a register receipt ok? I didn't think it supplied enough information? Thanks for any help on this.

[papogi]

If the register receipt lists the drug so that the claims processor can make an accurate determination as to whether it is allowed under Section 125, then it should suffice. Problem is, very very few register receipts provide enough information. Requiring the Rx stub is the way to go.

If the group pushes back, explain that their previous carrier/company took a very relaxed view of the IRS regs, and your interpretation is designed to protect the qualified status of this 125 plan. You don't want to risk that the IRS might levy all kinds of back taxes and penalties on the group and/or participants.