Effective January 1, 2008, the Inventory Information Approval System (IIAS) took effect for FSA and HRA debit cards.

The IIAS is technology used by retailers/merchants to ensure that FSA/HRA card transactions are for eligible medical care expenses. Participating merchants’ systems automatically recognize and separate FSA-eligible from non-eligible purchases using the IIAS. Eligible purchases can be placed on the debit card, and the consumer is asked for an alternative payment method for ineligible items.

As of 1/1/09, all grocery stores, discount stores, wholesale clubs and pharmacies must be IIAS certified in order to accept the debit card. 

Please note that if a cardholder uses the debit card at any IIAS certified merchant including Walgreen’s, Target or the online drugstore, www.drugstore.com/fsa to purchase over-the-counter drugs, no substantiation will be required for FSA eligible expenses. FSA eligible expenses will be charged to the debit card. The provider will then ask for another form of payment in a separate transaction for the non-FSA eligible expenses.

The debit card will continue to be accepted as it has been in the past for other health care merchants (physician, dental or vision providers). The merchants most affected by the IIAS are grocery stores, discount stores , warehouse clubs and pharmacies.

Some of the grocery/ discount merchants and pharmacies who are already IIAS-certified are:

Drugstore.com

Meijer

Sam’s Club

Target

Walmart