Navigating SIGIS registration

Implementing the IRS requirement, in effect since July, that merchants have an Inventory Information Approval System (IIAS) has not been a completely smooth process for many pharmacies. There are two options for meeting this requirement, and the American Pharmacies preferred vendor in this arena, eStream, can help you through the process.

An IIAS is a combination of inventory management and point-of-sale systems.

• Confirms eligibility of health care items purchased with an FSA or HRA card,
• Generates a payment transaction containing required IIAS information, and
• Includes an information archive system that allows the retailer to respond to an IRS audit.

An alternative option to the IIAS is for Individual pharmacies that meet the threshold of 90 percent of sales qualifying as FSA eligible. Here are a couple of distinct differences between the two types of registration:

Registration under the 90 percent Rule
This does not require a point-of-sale (POS) system. If your pharmacy does not have a POS system already in place it can be a costly investment. This form of registration is the most simple method for implementation as there are no special codes (MVV and MCID) that have to be requested from the card associations (Visa and MasterCard). The main disadvantage registration under the 90 percent rule is that individual health plans have the ability to decline all FSA, HAS, and HRA transactions from pharmacies that are registered under the 90 percent rule. eStream has encountered several health plans that have chosen to do this.

IIAS Registration
This a no-brainer if you already have a POS system in place that is certified as a Third Party Service (TPS) with the Special Interest Group for IIAS Standards (SIGIS.) When your IIAS registration is completed with SIGIS and your POS system is configured with your TPS, all benefit cards will be approved by the health plans. The disadvantage of this form of registration is the upfront cost of an IIAS-certified POS system (if one is not already in place) and the time delay to receive the special codes (MVV and MCID) from the card associations to complete the process.

eStream is able to assist your pharmacy in selecting the registration type best suited for your pharmacy. If you are having trouble accepting benefit cards, or would like to take advantage of the savings American Pharmacies has negotiated with eStream for credit/debit card processing, please call us at 800.886.4037 option 1.

The National Community Pharmacists Association's focus for the coming year was outlined during NCPA's 111th Annual Convention and Trade Exposition in New Orleans.

"Independent pharmacies also have a role to play in helping the greater community," said NCPA President Joseph H. Harmison, PD. "That's why we adopted resolutions committing our association to be more proactive in preventing the abuse of medications and promoting their proper disposal. We also want to play a central role in the implementation of health information technology to improve the efficiency and coordination of health care. If we make progress in those areas then everybody will benefit."

The resolutions include:

1. Stopping the anti-competitive business practices that have occurred since the CVS Caremark merger that harm patients and community pharmacies;
   
2. Working at the federal and state level to raise reimbursement rates for Medicaid generic prescription drugs from unacceptably low levels that will hinder pharmacies' ability to remain in the program;
   
3. Pushing for greater pharmacy benefit manager transparency in their undisclosed transaction arrangements;
   
4. Undertaking a collaborative effort to adopt health information technology;
   
5. Increasing prescription drug disposal programs for unused or expired medications;
   
6. Achieving a pharmacy exemption for the Medicare Part B durable medical equipment (DME) accreditation requirement; and
   
7. Providing support for local and national efforts to stop prescription and non-prescription drug abuse.
   

To view all of the resolutions in detail, click here.

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