August 3, 2010
Over-the-Counter Medicines May Still Be Eligible
On March 23, 2010, President Obama signed legislation to overhaul the nation's health care system. Included in the new law are changes to eligible Over-the-Counter expenses for pre-tax accounts including FSA, HRA and HSA plans.
Beginning January 1, 2011, a provider’s directive note (prescription) will be needed for over-the-counter (OTC) medicines, drugs and biological treatments to be reimbursed through an FSA, HRA or HSA and cannot be purchased using the PreTax debit card.
For example:
If you currently (in 2010) use your Pre-Tax debit card to purchase OTC Advil, effective January 1, 2011, you will no longer be able to use your Pre-Tax debit card to purchase the Advil.
Instead, you must first obtain a medical providers directive (prescription) stating that you need Advil to treat your medical condition, then you may purchase the Advil using after-tax dollars (cash, check or another credit or debit card).
Submit both your receipt and prescription to HR Simplified for reimbursement.
On January 1, 2011, the Pre-Tax debit card will still work for other OTC products such as bandages, durable medical supplies,blood-pressure monitoring devices,crutches, diabetic supplies and many other OTC non-medicines.
Over-the-counter medicines, drugs and biological treatments are about 35 percent
of the current eligible OTC list.
Only those items that represent drugs, medicines and biologicals require a provider’s directive. The items affected include items in the following categories:
Acid Controllers
Allergy & Sinus
Antibiotic Products
Anti-Diarrheals
Anti-Gas
Anti-Itch & Insect Bite
Antiparasitic Treatments
Baby Rash
Ointments/Creams
Cold Sore Remedies
Cough, Cold & Flu
Digestive Aids
Feminine Anti-Fungal/Anti-Itch
Hemorrhoidal Preps
Laxatives
Motion Sickness
Pain Relief
Respiratory Treatments
Sleep Aids & Sedatives
Stomach Remedies
Click here to support efforts underway to encourage elimination of the pending OTC restriction.