Heathcare Reform to Restrict Use of FSAs, HRAs and HSAs
As the recently enacted Patient Protection and Affordable Care Act continues to move toward full implementation, it is apparent that the bill could very well change the manner in which we use our coverage. One aspect of the bill that has caused a stir amongst insured individuals is concerning the guidelines for the purchase of over-the-counter products through Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA).
Effective January 1st, 2011, individuals with an FSA, HRA or HSA are no longer permitted to use money from these accounts toward the purchase of any over-the-counter drugs. Medications that would fall under this classification includes ibuprofen, acetaminophen and cough syrup, to name a few. In order to receive an exception a Note of Medical Necessity (NMN) or doctor’s prescription must be provided. A copy of either one is also required once a year for claims payment.
Although the recent healthcare reform will restrict over-the-counter drug purchases, FSA, HRA and HSA owners may still use account funds toward the purchase of non-drug related products, such as bandages, wound care, contact lens solution, condoms, etc.
FSA and HSA participants should consider these new rules concerning over-the counter drug purchases when estimating their contribution amounts for 2011. Participants are encouraged to make all over-the-counter purchases prior to January 1st, 2011.
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