CARES Act Makes ACA FSA/HRA Changes

Posted by BAS - 02 April, 2020

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The Patient Protection and Affordable Care Act (ACA) established a rule that starting January 1, 2011, distributions from health care flexible spending account plans and health reimbursement accounts could reimburse the cost of over-the-counter medicines or drugs only if the items were purchased with a prescription. The Coronavirus Aid, Relief and Economic Security Act (CARES Act) signed into law last week removes the prescription requirement for OTC reimbursements and makes additional items eligible for reimbursement.

  • Over-the-counter (OTC) medicines and drugs may now be reimbursed from a Health Care FSA without a prescription.
  • Menstrual care products may now be reimbursed from a Health Care FSA. Eligible items include tampons, pads, liners, cups, sponges and similar products.

Both of these changes are effective for expenses incurred on and after January 1, 2020.

For employers with FSA/HRA accounts administered by BAS, BAS will automatically reverse previously denied OTC and menstrual product claims and process the claims for reimbursement, to the extent participants have funds in their accounts. Going forward, BAS will administer claim reimbursements for these items as it does for other eligible expenses.

If you have questions about BAS’ flexible spending account or health reimbursement account services, please contact your account manager or info@BASusa.com.

Topics: Health Care Reform (ACA), Covid


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