Over-the-Counter Changes for your Flex Plan
08/23/2010
Part of health care reform we've been investigating lately is payment of Over-the-Counter (OTC) products with funds from Flexible Spending Accounts (FSAs), Health Reimbursement Accounts (HRAs), or Health Savings Account (HSAs). After December 31, 2010, employees will no longer be able to use pre-tax funds to pay for OTC items like aspirin or cough medicine.
But what we're learning is that not all administrators will process these claims the same way. Some FSA administrators, for example, will allow account holders to purchase these items as long as they have a prescription or letter of medical necessity, but it will be a more complicated process as paperwork will have to be submitted. Others will automatically deny OTC purchases via debit card. So - what can you do?
- Watch your email for updates. Many FSA administrators sent updates within the past week, or plan to soon. Their clarity will define how your plan is administered.
- If you have a FSA plan that is on a plan year, not calendar year, stay tuned. These changes go into effect January 1, 2011, regardless of when your plan renews. Your Account Executive will be in touch with some additional communication information for your employees.
- Let us know if you have additional concerns. We're here to help!
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