Changes Effective January 1, 2011

What Changed: In March, 2010, Congress passed H.R. 3590, the Patient Protection and Affordable Care Act (PPACA). This Act amended previous legislation in which over-the-counter (OTC) medicines and drugs had been deemed eligible for reimbursement from a Flexible Spending Account (FSA), Health Saving Account (HSA), and Health Reimbursement Arrangement (HRA). The new legislation is very clear: “reimbursement for expenses incurred for a medicine or drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.”

What Does This Mean to Me?

Effective on January 1, 2011, all medicines or drugs purchased over-the-counter require a prescription or Letter of Medical Necessity from your medical practitioner if the expenditure is to be reimbursed from your Medical FSA. Some examples of these items include the following:

• Allergy & Sinus Products
• Antibiotic Products
• Anti-Itch & Insect Bite Products
• Baby Rash Ointments & Creams
• Cough, Cold, & Flu Products
• Laxatives
• Pain Relievers
• Sleep Aids & Sedatives

All OTC health-related supplies continue to be eligible for reimbursement after 12/31/2010 without additional documentation. Some examples include the following:

• Bandages & First Aid Dressings
• Blood Pressure Kits
• Contact Lens Solution
• Diabetes Testing Supplies
• Hearing Aid Batteries
• Hot, Cold, & Steam Packs
• Insulin
• Splints, Supports, & Braces