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Over-the-counter medicines eligible under FSA's

The IRS and the Treasury Department announced that over-the-counter drugs can now be paid for with pre-tax dollars through health care flexible spending accounts .

“Flexible spending accounts is an important tool in helping people meet their health care costs. Since many prescription drugs have moved to the over-the-counter market, this action…makes paying for them a little bit easier to swallow,” said Treasure Secretary John Snow.

Specifically addressed by the ruling were antacids, allergy medicines, which were determined to be expenditures for medical care and considered reimbursable.

Because no specific effective date was given, whether a plan may begin immediately reimbursing over-the-counter drug requests will depend on how each plan is written.

 
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