The recently enacted 2020 CARES ACT changes the provisions for purchasing of over-the-counter (OTC) drugs or medicines. These changes apply to expenses that were incurred on or after January 1, 2020.
FSA plans are now allowed to reimburse over-the-counter (OTC) drugs or medicines, without a prescription. This includes items such as:
- antihistamines, and
- cough syrup
Items purchased to support general health, such as vitamins and supplements, still require documentation that the item was prescribed.
In addition, menstrual care products qualify as an eligible expenses. Menstrual care products include items such as tampons, pads, liners, cups, sponges, or similar products.
Buying these items using the Navia debit card may not immediately work, as all the stores have to update their internal coding so the items flag as eligible. If employees have difficulty with the debit card, they can submit the receipt as a claim for reimbursement.
Keep in mind that Open Enrollment is right around the corner. This is the time each year to enroll or re-enroll for flexible spending accounts without a qualifying event. Look for information from your HR offices later this month. For more information about how flexible spending accounts work, visit the OGI Flexible Spending webpage.