Q.- I know the IRS issued a rule this year that allows health flexible spending accounts to reimburse over-the-counter drugs without requiring a prescription. Does this mean all over-the-counter items can now be reimbursed without any extra documentation?
A.- No. You may be required to provide a Letter of Medical Necessity if the item you are purchasing has both a medical and a non-medical purpose. A health flexible spending account must make sure all reimbursements are for medical purposes- for the diagnosis, treatment or prevention of disease or medical condition.
Some items, such as vitamins/supplements, adaptive equipment, or certain therapies, may be used for medical reasons or may be used for general health reasons. Therefore, these items, even if purchased over-the-counter, may require additional documentation before being reimbursed from a health flexible spending account plan.
