Question of the Week

Posted by BAS - 20 August, 2020


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.

Topics: Dependent Day Care FSA, Healthcare FSA, Flexible Spending Accounts, HR & Benefit Plans, HR & Benefits News

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