New Inventory System (IIAS) Eliminates Need for Receipts at Participating Merchants

Thanks to guidance issued by the IRS, you no longer have to submit receipts to verify eligible OTC FSA and HRA Health Care Card purchases at IIAS participating merchants.

IIAS, which stands for Inventory Information Approval System, is new for 2008 and is the result of a recent IRS rule that requires all non-health care merchants – such as supermarkets, warehouse and discount stores – to be able to identify healthcare items at the time of purchase.  Because of IIAS you no longer have to submit receipts for eligible purchases, but in order for you to use your Health Care Card at a non-health care merchant, the merchant must have an IIAS system in place.

Please note that these regulations also require your Card to be declined at any supermarket, warehouse or discount store that is not IIAS certified. 

Before shopping at non-healthcare merchants, we recommend that you review the frequently updated list of IIAS participating merchants provided by the Special Interest Group for IIAS Standards (SIGIS) at www.sig-is.org.

Also note that your Card will continue to be accepted at health care merchants, such as doctor’s offices and pharmacies. But, since many of those merchants will not be IIAS certified, it is likely that you will be asked to submit receipts to verify those Card transactions.