NU Online News Service, Oct. 3, 2003, 5:11 p.m. EST – SmartFlex, a unit of Motivano Inc., New York, will be working with U.S. Script Inc., Fresno, Calif., to market a card-based system for running flexible spending accounts.

Employers can use the cards, which resemble debit cards, to administer health care, dependent care and transportation benefits, SmartFlex says.

SmartFlex and U.S. Script will provide substantiation tracking for electronic prescription transactions, and they also will follow up with requests for the information needed to substantiate claims for over-the-counter drugs, SmartFlex says.

The Motivano program will compete with similar programs offered by Evolution Benefits L.L.C., Avon, Conn., and Med-I-Bank Inc., Waltham, Mass.

The Internal Revenue Service gave the programs a boost earlier this year by ruling that employers can use card-based system records to substantiate many FSA claims.