What is IIAS?
An Inventory Information Approval System (IIAS) is point of sale technology used by non-medical retailers to ensure all benefit card transactions represent qualified health care purchases. Effective July 1, 2009 the IRS requires all grocery stores, discount stores, and pharmacies to be IIAS certified in order to accept benefit cards like the CareFlex Express Benefits Card.
Every item in the store's scanner database is flagged as eligible for reimbursement from Flexible Spending Accounts, Health Reimbursement Arrangements, and Health Savings Accounts. Items that are not IRS eligible will need to be paid for using another form of payment in a separate transaction.
The advantage of purchasing qualified expenses from a certified merchant is the elimination of substantiation and documentation requests. Participants, however, should continue to maintain all receipts when they have used their CareFlex Express Benefits Card to provide to the IRS for review, if required.
In addition to an IIAS system, the IRS allows merchants to continue to accept benefit cards like the CareFlex Express Benefits Card if 90% or more of sales from the previous year were for healthcare related items such as prescription drugs and over the counter items. Substantiation will be required from merchants under the 90% rule.
The CareFlex Express Benefits Card will continue to be accepted at all medical providers, including dental offices, vision centers, hospitals, etc. as designated by the plan design.