Flexible Spending Account Alert
Healthcare Reform Law May Impact Flexible Spending and Health Saving Account Reimbursements for Over-the-Counter Purchases
The new healthcare reform law has resulted in new Internal Revenue Service (IRS) restrictions on the purchases of over-the-counter (OTC) medications using funds from pre-tax healthcare accounts.
More than 15,000 products will be affected by these new reimbursement regulations.
Your healthcare plan will have more information on how these restrictions will impact you, but here are some general questions and answers that might be helpful.
When will the new restrictions begin?
Beginning Saturday, January 1, 2011, purchases of many OTC medications will only be eligible for pre-tax healthcare account reimbursement when they are purchased with a prescription.
Which pre-tax healthcare accounts will now be restricted?
| Flexible Spending Accounts (FSA) |
Health Savings Accounts (HSA) |
| Health Reimbursement Accounts (HRA) |
Medical Savings Accounts (MSA) |
What types of products will now require a prescription before they are eligible for pre-tax healthcare account reimbursement?
| Acid Controllers | Digestive Aids |
| Allergy & Sinus Medicine | Feminine Anti-Fungal/Anti-Itch |
| Antibiotics | Hemorroidal Preps |
| Anti-Diarrheals | Laxatives |
| Anti-Gas Products | Motion Sickness |
| Anti-Itch & Insect Bite | Pain Relievers |
| Anti-Parasitic Treatments | Respiratory Treatments |
| Baby Rash Ointments/Creams | Sleep Aids & Sedatives |
| Cold Sore Remedies | Stomach Remedies |
| Cough, Cold & Flu |
Who should I contact about these new restrictions?
Please contact your health insurance company, your healthcare plan or your employer to inquire about the impact of these new government restrictions.
