In March 2010, the Patient Protection and Affordable Care Act (PPACA) amended previous legislated definitions of which over-the-counter (OTC) healthcare expenses are eligible for tax advantaged benefit plans such as Flexible Spending Accounts, Health Reimbursement Arrangements, and Health Savings Accounts. The language made the current definition very clear, “reimbursement for expenses incurred for a medicine or drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.”
Use one of our helpful guides to learn which over-the-counter items require a prescription or a Prescription Order Form to be an eligible expense on your Plan.
FlexSystem Eligible Expenses (Healthcare FSA and Dependent Care FSA)
TASC Guide to Deductible Expenses (TC-3496)
If you have a TASC Card, it can be used to pay for medical expenses at clinics, optometrists, dentists, pharmacies, and other merchants with a healthcare inventory approval system in place. It can also be used for daycare and transportation account expenses, if applicable. For a list of merchants with the healthcare inventory system, visit www.sig-is.org.