Flex Card Participants: Important changes 7/1/09

The IRS has imposed a 7/1/09 deadline on pharmacies and retail merchants, requiring them to have an IIAS (Inventory Information Approval System) in place by this date in order to accept cards tied to a Flexible Spending Account. You have probably noticed this system in place already at many of your favorite stores - if you have swiped your Flex Card at a pharmacy or retail merchant and then did not have to submit documentation for your purchase later, an IIAS was responsible. As of 7/1/09, over 4,000 national, regional, and local merchants will be using an IIAS. For an updated IIAS list, visit: www.probenefits.com/Debit/IIAS.html.

However, there are still some pharmacies and retail merchants who do not yet have an IIAS in place, and as of 7/1/09 your card will be declined at these locations. If you prefer to shop at a store that is not on the IIAS list, that's no problem - you may always pay out-of-pocket and submit a Reimbursement Claim Form (http://www.probenefits.com/Forms/Claimb.pdf) with a receipt for your expenses.

This change means that every successful card swipe at a pharmacy or retail location should autosubstantiate, meaning you will not have to submit documentation to ProBenefits for your purchase. However, keep in mind that even though you don't have to submit it, the IRS does require that you keep that documentation on file in case of audit.

PLEASE NOTE:  Flex Card use at medical offices, if allowed by your plan, will not be affected by this deadline. Card use at medical offices may still require documentation.

If you have any questions about the Flex Card, please contact us.