[September 24, 2008]

Employees enrolled in the Health Care Reimbursement Account (HCRA) have until Tuesday, September 30, 2008 to resolve their outstanding card transactions from 2007. Employees unable to obtain receipts to validate their claims based on Internal Revenue Service (IRS) rules must reimburse SHPS for ineligible amounts. If not, the spending account card will be deactivated for the remainder of 2008 and UC must consider the outstanding overpaid amount as a debt to the University.

SHPS mailed updated 2007 account statements in mid-August to those with outstanding 2007 card transaction; the statement included a list of all transactions requiring receipts, along with a Validation Return Form with the request to complete and return. UC HR/Benefits also sent a letter to employees with unsubstantiated card transactions, asking them to resolve their outstanding transaction(s) with SHPS.

Even though spending account card purchases were accepted at point-of-sale, the IRS requires that all expenses paid by the spending account card be validated as a qualifying health care expense. This means that SHPS must receive proof to document the purchase. Please note that this is an IRS mandate, not a SHPS or University requirement.

Employees who are participating in the HCRA during 2008 are also encouraged to fully review their statements to determine if action is required.

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