Without a prescription, the cost of an over-the-counter medicine or drug cannot be reimbursed from certain tax-favored arrangements starting January 1, 2011, the IRS explained in recent guidance on statutory changes made under the Affordable Care Act. Those arrangements include flexible spending arrangements (FSAs) and health reimbursement arrangements (HRAs).
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Get Your Report Now!Exceptions apply to over-the-counter purchases of insulin, medical devices, eye glasses, contact lenses, co-pays, and deductibles, according to the IRS guidance.
A similar rule for Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (Archer MSAs) will also go into effect on January 1, 2011.