- 188
My father has some groups who utilize FSA's. The way I understand it, as of 1/1/11, FSA's will not allow for the purchase of generic/OTC meds.
Am I missing something or is this correct?
Am I missing something or is this correct?
FSA - Change to Generic RX
- Thread starter JosephDeacon
- Start date
- 10,275
OTC Rx was eliminated. On our HSA, I guess Tylenol etc... is now at our expense.
- Thread starter
- #3
- 188
As of 1/1/11 right? How are you doing?
- 1,861
Not to split hairs here, but a generic is not necessarily an OTC med.....
- Thread starter
- #5
- 188
You are correct. I was actually looking for some clarification on that. So, it only eliminates generic RX?
- 10,275
OTC was eliminated. As far as I know, generic and non-generic if prescribed are OK.
- 4,096
That is how I understand it.
Makes no sense. Why would you not try promote consumerism with people taking OTC's?
- 166
This is something I picked out of an email from a flex administrator on the topic -
"[FONT=Arial,Helvetica,sans-serif][FONT=Arial,Helvetica,sans-serif]It is true that the new law seems straightforward on its face. Health FSAs and HRAs can only reimburse expenses incurred for medicines and drugs if the medicine or drug is actually prescribed (with the exception of insulin). So, whereas before you could be reimbursed for your over-the-counter purchase of, say, Claritin, now you may not (starting January 1, 2011).
Nevertheless, there are still a number of open issues out there, at least when you go beyond obvious cases such as Claritin and the like. It is clear, for instance, that bandages by themselves would no longer be eligible for reimbursement, but what about, say, medicated bandages? Or any other of a host of items which may or may not be considered "medicines or drugs"?
What's more, it remains unclear what a "prescribed" medicine or drug really is for these purposes. Will there be special procedures to undertake? Will only "M.D.s" be able to write the prescriptions or will other medical practitioners have this privilege? Does anything even have to be written at all? At present, we simply do not know.
We also do not know if any leniency will be granted to plans or plan participants whose plan years overlap the January 1, 2011 date. There have been rumors that a so-called "transition relief" is being considered, that would possibly range anywhere from one month to six months, but at this time it is still just under consideration. In any case, the statute as written seems quite clear that the drop-dead date is January 1, 2011, regardless of plan year dates. Furthermore, it's unclear whether such a transition period would be that useful anyway, given the level of confusion that may result among plan sponsors and participants."[/FONT][/FONT]
"[FONT=Arial,Helvetica,sans-serif][FONT=Arial,Helvetica,sans-serif]It is true that the new law seems straightforward on its face. Health FSAs and HRAs can only reimburse expenses incurred for medicines and drugs if the medicine or drug is actually prescribed (with the exception of insulin). So, whereas before you could be reimbursed for your over-the-counter purchase of, say, Claritin, now you may not (starting January 1, 2011).
Nevertheless, there are still a number of open issues out there, at least when you go beyond obvious cases such as Claritin and the like. It is clear, for instance, that bandages by themselves would no longer be eligible for reimbursement, but what about, say, medicated bandages? Or any other of a host of items which may or may not be considered "medicines or drugs"?
What's more, it remains unclear what a "prescribed" medicine or drug really is for these purposes. Will there be special procedures to undertake? Will only "M.D.s" be able to write the prescriptions or will other medical practitioners have this privilege? Does anything even have to be written at all? At present, we simply do not know.
We also do not know if any leniency will be granted to plans or plan participants whose plan years overlap the January 1, 2011 date. There have been rumors that a so-called "transition relief" is being considered, that would possibly range anywhere from one month to six months, but at this time it is still just under consideration. In any case, the statute as written seems quite clear that the drop-dead date is January 1, 2011, regardless of plan year dates. Furthermore, it's unclear whether such a transition period would be that useful anyway, given the level of confusion that may result among plan sponsors and participants."[/FONT][/FONT]
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