FMI Applauds HRA/FSA Debit Card Decision

Dec 19, 2006 11:54 AM

ARLINGTON, Va. - Food Marketing Institute here yesterday applauded a recent Internal Revenue Service ruling that consumers may use Health Reimbursement and Flexible Spending Account debit cards at all supermarkets and mass merchant outlets. Previously, the IRS held that consumers could redeem benefits with HRA and FSA debit cards only at drug stores until supermarkets and mass merchants install the technology to process these transactions, known as an information inventory approval system. “This is a victory for consumer convenience. It frees them to obtain valuable health benefits at retail stores everywhere,” Tim Hammonds, president and chief executive officer of FMI, said in a statement. The ruling will allow for debit card purchases of “hundreds of millions of dollars” in drugs and other products that qualify for the benefits at supermarkets and mass merchant outlets in 2007, according to FMI estimates.