October 23, 2008 On January 1, 2009 the IRS will require all non-medical merchants to have a valid Inventory Information Approval System (IIAS) in place at any given location in order for an FSA/HRA Benefits Card to be used.This includes all drug stores and pharmacies (an addition to the 2008 requirement). Since its rollout at the start of 2008, the IIAS solution has been highly successful, and has resulted in a dramatic increase in auto-substantiated POS transactions….meaning fewer receipts participants are required to submit! All drug stores and pharmacies must have IIAS in place on 1/1/2009; otherwise, the Benefits Card will not work at those locations. read more
On January 1, 2009 the IRS will require all non-medical merchants to have a valid Inventory Information Approval System (IIAS) in place at any given location in order for an FSA/HRA Benefits Card to be used.This includes all drug stores and pharmacies (an addition to the 2008 requirement). Since its rollout at the start of 2008, the IIAS solution has been highly successful, and has resulted in a dramatic increase in auto-substantiated POS transactions….meaning fewer receipts participants are required to submit! All drug stores and pharmacies must have IIAS in place on 1/1/2009; otherwise, the Benefits Card will not work at those locations. IMPORTANT INFORMATION ABOUT YOUR FLEX/HRA BENEFITS CARD April 2, 2008 As of December 31, 2007, Flex/HRA benefit cards cannot be used at grocery stores and retail centers UNLESS the merchant has implemented the IIAS (Inventory Information Approval System). The IRS requires merchants that sell qualified medical expense good and services (but do not have a health care merchant code) to have an IIAS in place by January 1, 2008 for purposes of accessing FSA/HRA funds. This includes any merchant with a merchant code of: Grocery Stores, Discount Stores, Warehouse Clubs, Convenience Stores, and Online Pharmacies. If a retailer’s merchant code is not healthcare related, the IRS requires plan administrators to only approve FSA/HRA card transactions when these merchants support an IIAS. The good ..... read more
