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Abstract
Consumers with flexible spending account (FSA) debit cards are finding that recent regulations from the IRS are making over-the-counter and prescription purchases easier than ever. These regulations, which work in favor of consumers, require retailers to have a point-of-sale technology, called an inventory information approval system (IIAS), in place to simplify the substantiation process. One of the most obvious benefits of IIAS is the added convenience for consumers. In addition to consumers, third-party administrators (TPAs) will reap benefits from the newly implemented systems. Although there are obvious benefits associated with IIAS implementation, consumers, TPAs, and employers must be cognizant of the systems' limitations. IIAS will not meet all of the needs of a cardholder, or TPA. While administrators may be tempted to offer a "low-end" card program, not all card vendors can equip TPAs, employers, and health plans with the tools needed to fully benefit from increased consumer-driven plan participation.