Inventory Information Approval System (IIAS)
Effective January 1, 2008, debit cards will only be accepted at healthcare related merchants, such as doctor and dentist offices, hospitals, vision care providers and pharmacies AND at retail merchants, such as grocery stores, discount stores and wholesale clubs, who have implemented an inventory information approval system (IIAS) as defined by Notice 2006-69, 2006-31 I.R.B. 107.
What is an “inventory information approval system” as specified by the IRS?
The retailer's point of sale system identifies eligible healthcare FSA/HRA purchases by comparing the inventory control information (e.g., UPC or SKU number) for the items being purchased, against a pre-established list of eligible medical expenses. The list is restricted to "eligible medical expenses" as described in Section 213(d) of the Internal Revenue Code (including eligible non-prescription items). The eligible medical expenses are totaled and sent to the payment card issuer's system which approves the payment subject to coverage under the health plan (i.e., type of coverage provided, covered participant, etc).
List of Certified Merchants
What is an “inventory information approval system” as specified by the IRS?
The retailer's point of sale system identifies eligible healthcare FSA/HRA purchases by comparing the inventory control information (e.g., UPC or SKU number) for the items being purchased, against a pre-established list of eligible medical expenses. The list is restricted to "eligible medical expenses" as described in Section 213(d) of the Internal Revenue Code (including eligible non-prescription items). The eligible medical expenses are totaled and sent to the payment card issuer's system which approves the payment subject to coverage under the health plan (i.e., type of coverage provided, covered participant, etc).
List of Certified Merchants
