**Attention all FSA Debit Card
Participants**
The regulations governing
where you can use your FSA debit card is changing.
Currently, use of the card is restricted to health care
providers and stores that have implemented what’s known as the
Inventory Information Approval System (IIAS).
Health care providers include locations such as hospitals,
health clinics, pharmacies/drugstores, etc.
As
of July 1st, 2009, in order for the FSA debit card to
be used at pharmacies and drugstores, these stores must have either
implemented IIAS or have officially certified that 90% of the cash
register receipts for the previous calendar year were for FSA
eligible expenses. If a
pharmacy or drugstore has not done one of these things, the card
must be declined at the point of sale.
What
is the Inventory Information Approval System or IIAS?
IIAS is a
system put in place at the point of sale that restricts purchases
with your FSA debit card to FSA-eligible expenses.
For example, if you go to the cash register at a retail
outlet that has implemented IIAS and hand the cashier a bottle of
aspirin, an eligible prescription and a six pack of cola and swipe
your FSA debit card, the card will pay for the aspirin and
prescription, and the cashier will ask you for $3.00 for the cola.
Purchases at
these stores should never prompt a request for follow up
documentation, as the merchant is insuring that you are only paying
for eligible expenses at the point of sale.
Almost all
chain stores have implemented IIAS.
HOWEVER, many local pharmacies and drugstores have not
implemented this system.
What
is the 90% rule?
The 90% rule
is an option for local pharmacies/drugstores to implement in order
to continue to accept the FSA debit cards after 7/1/2009.
If you use your FSA debit card at these locations, the
transactions might prompt a request for follow up documentation from
the end user.
Transactions will NOT prompt a request for follow-up documentation
if it:
1)
Matches the prescription co-payment amount
for the health insurance plan you have selected through your
employer. Please note
that co-payments are generally a flat dollar amount.
If your insurance plan charges co-insurance for prescriptions
(i.e. you are responsible for a percentage of the overall cost of
the drug), you will be prompted for a request for follow up
documentation; or
2)
Is a recurring expense that you have
substantiated one time with paper documentation and you notify
ASIFlex that the expense is recurring.
This expense has to be the exact same dollar amount.
All
other transactions at these stores will prompt a request for
follow-up documentation.
What
if my pharmacy or drugstore is not certified under the 90% rule and
has not implemented IIAS?
Per IRS rules,
if a pharmacy or drugstore has not taken one of these steps, after
7/1/2009, your FSA debit card must be declined at the point-of-sale.
However, this does not mean that you cannot shop there for
your prescriptions and OTC medicines.
It does mean that you will not be able to use your FSA debit
card at these locations.
ASIFlex will still accept your paper claim submission and, on
average, processes these claims within one business day of receipt.
Where
can I find a list of retailers that have implemented the IIAS or are
certified under the 90% rule?
There is a
non-profit independent consortium that maintains these lists called
SIGIS. These lists are
updated several times a month, so if you don’t see your preferred
retail outlet on these lists, please check back later.
IIAS Merchant List
90% Rule Merchant List