Flexible Spending Accounts
Changes in Over-the-Counter Medications
The Federal Affordable Care Act requires a prescription for over-the-counter (OTC) medications, excluding insulin, when seeking reimbursement through a health care Flexible Spending Account. The Internal Revenue Service provides the following official guidance on this provision:
An OTC medication may be reimbursed if:
- A prescription is written that includes the drug name, strength, dosage form, quantity prescribed, directions for use, and number of refills (if any) authorized and a dated receipt (or a similar 3rd party documentation) showing the date and amount of the purchase.
- The prescription is written prior to any purchases (no backdating).
Please inform us at the time of your request if you are using a Flexible Spending Account.
For more information, please visit the IRS website and review the Question & Answer Section for Flexible Spending OTC Drugs.