This past summer the IRS issued Notice 2006-69 that would have limited the convenience of using health care debit cards at discount stores, grocery stores, supermarkets, wholesale clubs, department stores, colleges and universities.

WageWorks has been working closely with other card issuers and industry groups to restore the convenience of using the card at these merchant types. We are now pleased to inform you that we've made good progress.

There has been an important change.
With two exceptions, these merchants have been given an extra twelve months to comply with the new regulations.

Discount stores, wholesale clubs, grocery stores, and supermarkets, have been given another twelve months to comply with regulations required to ensure the separation of spending account-eligible items and non-eligible items.

Exceptions
However, effective January 1, 2007, health care debit cards will not be accepted at department stores, colleges and universities. WageWorks estimates that this will impact less than 1% of all health care debit card transactions.