Nearly one-third of the pharmaceuticals purchased in the U.S. are sold through a discount store (e.g., Target, Wal-Mart) or a supermarket chain. The IRS required that these non-health care merchants had IIAS systems in place as of Jan. 1, 2008. And beginning on Jan. 1, 2009, the same IIAS requirement will extend to CVS, Rite-Aid, Walgreens and most other drugstores. Because only eligible health expenses can be paid for through a health debit card, merchants must tag all qualified items in their inventory databases so that those items can be automatically identified at the point of sale. But the expense of moving to a system that provides item-level detail could be cost-prohibitive for some retailers that sell pharmaceuticals and over-the-counter drugs.

To take advantage of these new opportunities, health plan managers need to understand the effect these new IRS rules will have on health care transactions, the cost savings involved when debit cards eliminate virtually all health plan paperwork, and the impact this revolution could have on member satisfaction.

First up, you'll hear from Chris Byrd, executive vice president of operations and development at Evolution Benefits, Inc., who will discuss the IRS rules that affect debit and credit cards and give you a look at the behind-the-card technology necessary to allow the cards to simultaneously integrate with the HSA custodian and the health plan in real time.

Next, John Duisberg, manager of business development at Availity L.L.C., will explain how debit-card technology can help providers determine eligibility and collect payment at the time of service. He’ll also explain how the use of the technology can give some health plans a competitive advantage.

Finally, Michael Plumb, business development consultant with Blue Cross and Blue Shield of Florida will explain how debit cards can simplify transactions and improve the relationship among health plans, providers and members. He will also will discuss the results of a joint venture between the Florida Blues plan and Humana Inc. to improve the flow of information between physicians, health plans, pharmacies and other stakeholders.

When you join us on Sept. 23, you’ll get 90 minutes (including 30 minutes of answers to your toughest questions) jam-packed with bottom-line information on dozens of important questions such as:

• Why will the new IIAS rules effective in January push debit cards to finally take off as some health plans had originally expected?
• What paperwork savings can health plans anticipate as a result of increased use of debit cards?
• How can cards help support a strategy of health care consumerism?
• How can health plans use technology to prevent “disintermediation”? 
• What are the challenges and new opportunities in estimating patient responsibility and using cards to pay at the point of service?
• How can Medicare Advantage plans use debit cards to give enrollees more choice?
• What is the potential ROI for health plans in terms of their cost savings?
• How health plans can gain a competitive advantage through financial and administrative product integration?

CHRIS BYRD is executive vice president at Evolution Benefits, a debit-card vendor that works with health plans and HSA administrators. His responsibilities include operations, product development and business development. Prior to co-founding Evolution, Byrd was senior vice president at Women’s Health USA, a group that provides management services to physician practices.

JOHN DUISBERG is manager of business development at Availity L.L.C., a health information exchange between providers, health plans and other health care stakeholders. His responsibilities include defining strategic business cases for new products and services, financial modeling and market-trend analysis. Duisberg has a background in new product development and the integration of financial and health care administrative business processes.

MICHAEL PLUMB is a business development consultant for Blue Cross and Blue Shield of Florida, where he identifies and develops new business models based on opportunities developing in the health care and financing industry. He has a specific focus on business opportunities within the health-payment space.

Moderator: Steve Davis, managing editor of AIS's industry-leading newsletters Health Plan Week and the biweekly Inside Consumer-Directed Care.