Notice Regarding Over the Counter Flex System Debit Card Claims - Irving ISD

Notice Regarding Over the Counter Flex System Debit Card Claims

Inventory Information Approval system (IIAS)

Due to guidelines by the IRS, beginning January 2010, non-medical discount merchants (such as Wal-Mart, Walgreen’s, Target, grocery-stores, etc.) must be IIAS certified in order for over-the-counter medical expenses to be deemed eligible for purchase via the Claim Card. If the merchant is IIAS certified the purchase (using the Stock Keeping Unit (SKU) number) will be checked against a list of eligible 213 expenses and, if eligible, the item will be allowed to be paid with the card and will automatically be marked ‘Substantiated’ by FlexSystem. No further action is required on the part of the Participant.

If the merchant is not an authorized IIAS discount merchant, a Participant may still purchase the item using a different payment method and submit a Request for Reimbursement to FlexSystem using the paper form or by entering their request using the MyTASC website and following the VeriFlex process to substantiate the expense.

This requirement was actually set for January 2008 then extended to July 1, 2009 and then again to January 2010. Please refer to the TASC Bulletin regarding IIAS at: http://tascprovidernews.com/?s=IIAS

These Cards automatically Adjudicate the claims the moment it's swiped to see if the purchase meets the reimbursement guidelines set by the IRS.

We have been receiving calls this week from Section 125 Participants saying that their cards were not working – the reason is they are using a Vendor that has not complied with the new IIAS requirements. This is not a TASC issue, TASC must comply with the IIAS in order to keep our clients in compliance.

You can go the Special Interest Group for IIAS Standards (SIGIS) website. www.sig-is.org/en/index.asp We update it periodically but not regularly because most of the major merchants have been added a long time ago.

You should note is that even though a merchant is listed as an IIAS merchant, they may not have IIAS in all of their stores yet or even on every register in their stores. We cannot control that, but the website is at least a reference for you.