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FSA OTC Purchase Period Winding Down

11/10/10

  06:34:13 pm, by MedBen5   , 177 words,  
Categories: News, Prescription, Health Plan Management

FSA OTC Purchase Period Winding Down

We’ve mentioned this before, but it bears repeating as the year winds down: Effective January 1, 2011, flexible spending account (FSA) funds can no longer be used to pay for over-the counter medications without a prescription. This includes such common items as aspirin, ibuprofen and cough syrup. As the Baltimore Sun notes, “[A]s you calculate during the fall insurance enrollment period how much to deposit in your FSA next year, it’s important to keep the new restrictions in mind.”

What’s the reason for this change in policy? As is often the case, to comes down to dollars and cents. Any purchase made through an FSA uses pretax earnings, which means less money in the government coffers.

Keep in mind that FSA funds will still cover items like bandages, contact lens solution and rubbing alcohol in addition to many other goods and services. You can find a complete list of eligible expenses at the MedBen website.

MedBen clients with questions regarding the new FSA rules are welcome to call Director of Administrative Services Sharon A. Mills at (800) 423-3151, Ext. 438.

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