Inventory Information Approval System (IIAS)

Important Changes Regarding Your mySourceCard Debit Card
Starting January 1, 2008, the IRS is requiring select retailers – including supermarkets, grocery, discount stores, wholesale clubs and mail-order merchants, to identify health-related items at the point of sale using the new Inventory Information Approval System (IIAS). IIAS makes it possible to identify Card transactions at the check-out counter. This insures that you can only use the Card for eligible items, and does away with the need to submit receipts for verification after the purchase.

In order to meet the IRS requirements, many retailers have changed their point-of-sale systems. This new requirement does not apply to healthcare providers such as doctors, dentist or hospitals and pharmacies have until January 1st, 2009 to comply. You can continue to use your mySourceCard debit card at these providers just as you do today. You will no longer be able to use your mySourceCard debit card at retailers who have not changed their point-of-sale systems to meet this 2008 IRS requirement. This may include retailers where you previously used your card.

What the Change Means to You
As of January 1, 2008 eligible healthcare items will be identified and noted on your receipt when you use your mySourceCard debit card at a participating retailer. In most cases, you will no longer need to submit receipts for these purchases to your plan – under IRS guidelines however, you must still keep your itemized receipts.

You may continue to use your debit card for Over-the-Counter (OTC) items at health care merchants such as pharmacies and drug stores that are not IIAS certified. Using the Card at non-IIAS certified pharmacies and drugstores for Over-the-Counter (OTC) items will require you to submit receipts for eligibility verification.

Please Note: Effective January 1, 2011, FSA, HRA and HSA funds may no longer be used to purchase over-the-counter medications unless they are prescribed by a health care professional.

To view a listing of retail merchants that have or will be implementing an IRS-approved inventory information approval system, please click on the following link and then click on “SIGIS Merchant List” under “Publications”. SIGIS