Aug 24, 2010

Over-the-counter Medicines Affected by the Patient Protection and Affordable Care Act (PPACA)

Posted by: Neal
Beginning January 1, 2011, over-the-counter (OTC) medicines will no longer be eligible FSA expenses unless prescribed by a doctor. OTC medicines (aspirin, ibuprofen, antihistamines, etc.) will need appropriate documentation from a doctor in order to be reimbursed by an FSA. Any claims submitted for reimbursement that include OTC drug expenses incurred on or after January 1, 2011 must be accompanied by appropriate documentation. Additional clarification on the OTC provision will be issued by the IRS in the near future.

This change only applies to OTC medicines and becomes effective on January 1, 2011, even if your clients are in the middle of their current plan years (such as plans that began on June 1, 2010 and end on May 31, 2011). Prescription drugs, insulin, and other OTC health care-related products, like blood pressure monitors, bandages, and first aid kits, continue to be eligible expenses.

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