NU Online News Service, May 27, 2003, 11:21 a.m. EDT – Med-i-Bank Inc., Waltham, Mass., has received $5 million in financing from Mesirow Financial Inc., Chicago.

Med-i-Bank, also known as mbi, sets up debit-card-based systems for administering health reimbursement arrangements, flexible spending accounts and other employee benefits accounts.

The company was founded in 1995 and now supplies card-based administration systems for more than 200 benefits administrators and 4,000 employers.

The card-based administration market is poised for growth because of a recent Internal Revenue Service ruling affirming that employers may use debit cards to run HRAs, mbi says.