OTC Medicines Eligible For Reimbursement Without a Prescription!

Last week, the president signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing $2 trillion dollars in economic relief to businesses and individuals. Included in this bill are two provisions that will greatly benefit our participants. The bill states that that HSAs, FSAs and HRAs* can once again be used to pay for OTC medications without the requirement for a doctor’s prescription. This means that for the first time since 2011, items like Tylenol, Claritin and Robitussin will be reimbursable at the point of sale without unnecessary trips to the doctor for a prescription! In addition, HSA, FSA or HRAs* will be able to pay for or reimburse the cost of menstrual care products as they will now be considered medical expenses. This change is effective for expenses incurred on or after January 1, 2020.

Please be aware that it may take some time for merchants to update their systems so that these items can be paid for with the FSA/HSA benefits payment card at the register. If anyone encounters any problems at the register, they should pay for their items using some other form of payment and then submit their itemized receipt to receive reimbursement.

These provisions come at a time where good news is much needed and appreciated as we all continue to cope with the COVID-19 crisis.

*It’s important to note that expenses reimbursable by an HRA will vary by employer. These expenses may not be considered eligible by your HRA if the plan is designed to only reimburses deductible or co-insurance expenses.

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