Are over the counter drugs eligible for hsa?

Penelope Jast asked a question: Are over the counter drugs eligible for hsa?
Asked By: Penelope Jast
Date created: Mon, Feb 8, 2021 9:40 AM
Date updated: Mon, Sep 19, 2022 3:46 PM


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Are over the counter medications HSA eligible?

  • Definitions. OTC: Over the counter. Medicines or drugs except insulin (for example, aspirin, cold remedies, or allergy medicines) are not eligible for reimbursement under an HSA (or medical FSA) unless the medicine or drug is “prescribed” (regardless of whether a prescription is required to obtain the item).

A. If you have an HSA or an Archer MSA, distributions for expenses that are not qualifying medical expenses (including over-the-counter medicines and drugs purchased without a prescription) will be included in your gross income and subject to an additional tax of 20%.

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The Coronavirus Aid, Relief, and Economic Security (CARES) Act—enacted in March 2020—has changed the requirements for over-the-counter medication coverage. Since it was written into law, over-the-counter medical purchases can be reimbursed via an HSA or FSA without the need for a doctor’s prescription. This change is retroactive to Jan. 1, 2020, and has no expiration date.

Effective Jan. 1, 2011, distributions from health FSAs and HRAs will be allowed to reimburse the cost of over-the-counter medicines or drugs only if they are purchased with a prescription. This new rule does not apply to reimbursements for the cost of insulin, which will continue to be permitted, even if purchased without a prescription. 2.

Thanks to the Coronavirus Aid, Relief and Economic Security (CARES) Act, you can use your FSA or HSA funds to buy over-the-counter medications without a prescription, like Tylenol and other pain...

Special Note: As part of the 2020 CARES Act, over-the-counter medications and menstrual care products are now eligible for purchase with health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs). This list includes products like allergy medication, pain relievers, prenatal vitamins, and tampons.

Over-the-counter drugs and medicines are again eligible for FSAs/HSAs/HRAs without a prescription. The CARES Act, a landmark stimulus law passed by Congress today, includes a provision that will benefit participants in Health Flexible Spending Accounts (“FSAs”), Health Savings Account (“HSA”) bank accounts, and certain Health Reimbursement ...

If you have a health savings account (HSA) or flexible spending account (FSA), you can now use those funds for several common over the counter (OTC) drugs, medicines, and products. The CARES Act of March 2020 expanded the benefits of HSAs and FSAs by removing the prescription requirement for several OTC drugs and medicines, and by adding feminine hygiene products to the list of expenses eligible for reimbursement.

Change 1: You will no longer be able to pay for over-the-counter (OTC) medicines with your HSA, unless you have a prescription. HSAs can still be used to pay for insulin and for many OTC supplies, such as bandages, wheelchairs and reading glasses. See examples below.

The CARES Act means that these over-the-counter drugs are HSA and FSA eligible without a prescription. Menstrual products. The CARES Act also included menstrual care products as eligible expenses for HSAs and FSAs. Eligible products include tampons, pads and menstrual sponges.

Antipyretics are over-the-counter (OTC) medicines that are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Antipyretics reimbursement is not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

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