Flexible spending accountThe IRS is backtracking on a rule that would have banned health account holders from using debit cards to purchase over-the-counter medication that now needs a prescription.

In late December, the IRS announced health reimbursement arrangement and flexible spending arrangement debit cards will be allowed to purchase OTC drugs after Jan. 15, as long as the account holder has a prescription in hand at the pharmacy, or a prescription is given to a Web-based or mail-order vendor.

The IRS says the use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed medicines or drugs.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • 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

© 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.