Critics of impending changes to medical spending accounts have been arguing for months to push back provisions that will take effect by the beginning of next year. Last week, the IRS issued guidance on such changes that aims to clarify certain restrictions on medical expense reimbursement through these accounts.
According to IRS guidelines, beginning Jan. 1, employees won't be able to make over-the-counter drug purchases using their flexible spending account or health reimbursement account unless they have a prescription.
Guidelines state the cost of an OTC drug or medicine can't be reimbursed unless the item is a prescribed drug, or if the medication is available over the counter and the purchaser obtains a prescription. Insulin will also be reimbursed even if there isn't a prescription.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
