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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:

  1. 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.
  2. 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.