perpetual daycare claims

[Guest cornwellbenefits]

It is my understanding that a participant can have their daycare provider sign an affadavit of daycare the beginning of the plan year and then we can continue to pay the claim on an automatic basis (assuming service incurred and amount on the affadavit) without additional substantiation.

Did this recently change? Someone has said it is their understanding you can't do this anymore, unless the daycare is paid with a debit card, but I can't find this reg????

Thanks!

[LRDG]

I'm not sure I fully understand your question or how the use of a FSA debit card would in any way perfect the claim.

In situations involving DC payments to service providers in advance of service dates, but within a plan year, I suggest including itimized weeks of service to DC provider receipts. DC reimbursement can 'automatically' be paid as the weeks of service are reached without further substantation.

For instance DC providers who require $600 monthly payment in advance, by itimizing weeks of service on the receipt and into an admin system will allow administration systems to release reimbursement payments weekly, or less frequently if there is a less frequent service agreement processing schedule.

Without the itimized weeks of service on the receipt and entered to the administration system, the entire payment will be pended until the end of the service period, or end of the month in this case. The $600 pended claim when combined with a $600 DC FSA payroll reduction to fund the reimbursement account, for a $1,200 monthly total, a financial juggling act each month for some families.

[SLuskin]

I'm not sure I fully understand your question or how the use of a FSA debit card would in any way perfect the claim.

In situations involving DC payments to service providers in advance of service dates, but within a plan year, I suggest including itimized weeks of service to DC provider receipts. DC reimbursement can 'automatically' be paid as the weeks of service are reached without further substantation.

For instance DC providers who require $600 monthly payment in advance, by itimizing weeks of service on the receipt and into an admin system will allow administration systems to release reimbursement payments weekly, or less frequently if there is a less frequent service agreement processing schedule.

Without the itimized weeks of service on the receipt and entered to the administration system, the entire payment will be pended until the end of the service period, or end of the month in this case. The $600 pended claim when combined with a $600 DC FSA payroll reduction to fund the reimbursement account, for a $1,200 monthly total, a financial juggling act each month for some families.

I am understanding the question differently. I thought the questions was, can you submit an annual bill for daycare, and just reimburse as the payroll deductions are made? We did this over 10 years ago, and then read something from the IRS which said that was not permitted. The provider of the service must give a receipt for each period of daycare. I do not have a problem with a period of daycare being 1 month. If someone is paid semi monthly, we would then reimburse 1/5 of the monthly expense the first pay period and the balance on the 2nd pay period, assuming that the payroll deductions equalled the expenses.