Over-the-Counter Items Now Reimbursable from Flexible Benefit Plan Health Care Spending Accounts
The Treasury Department and the IRS recently changed their informal position regarding the reimbursement of over-the-counter drugs from Health Care Flexible Spending Accounts. Because the IRS guidance reflects an interpretation of existing law, it is not limited to purchases on or after the date the Revenue Ruling was issued, which means that participants may submit expenses retroactively to the beginning of the current Plan Year.
The allowable items specifically listed in the ruling include aspirin, antacids, allergy medicines, pain relievers, and cold medicines.
Specifically excluded were vitamins and dietary supplements merely beneficial to the general health of the individual. Guidance was not provided for naturopathic items prescribed to treat a specific medical condition.
To receive reimbursement, the claim must be submitted on a Health Care Request for Reimbursement Form. Proper substantiation must be provided including a copy of an itemized receipt with the purchase date and amount.
Mid-year FSA election changes are NOT allowed as a result of this Revenue Ruling.
Click here to view the IRS press release:
Click here to view the revenue ruling:
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