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Over‐The‐Counter Medicine & Drug Purchases Using HSA FSA
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Effective January 1, 2011 the IRS has made a change regarding what is needed for substantiating your over‐the‐counter (OTC) medicine and drug purchases when using tax‐free dollars through your HSA or FSA.
What is changing?
You will be asked to submit proof of a doctor’s prescription for OTC medicine and drug purchases. Documentation can be either of the following:
1. A receipt that identifies the purchaser along with an RX number; or
2. A receipt showing the item purchased along with a copy of the prescription.
When does this start?
The rule goes into effect January 1, 2011. It is the actual purchase date of the expense that will determine whether or not a prescription is required.
Can I still use my debit card?
Debit cards may no longer be used to purchase OTC medicines without a prescription as described above. Debit cards may continue to be used for the payment of other OTC items not classified as medicines and drugs. Over 27,000 OTC items remain on the list for purchase without prescription and those items may still be purchased using your HSA debit card.
Below are examples of items that will require a prescription and what items remain eligible for purchase without a prescription.
Requires a doctor’s prescription:
- Acid Controllers
- Antiparasitic Treatments
- Hemorrhoidal Preps
- Allergy & Sinus
- Baby Rash Ointments/Creams
- Laxatives
- Antibiotic Products
- Cold Sore Remedies
- Motion Sickness
- Anti‐Diarrheals
- Cough, Cold & Flu
- Pain Relief
- Anti‐Gas
- Digestive Aids
- Respiratory Treatments
- Anti‐Itch & Insect Bite
- Feminine Anti‐Fungal/Anti‐Itch
- Sleep Aids/Sedatives
Does not require a doctor’s prescription:
- Acne Creams
- Denture Adhesives
- Infant Electrolytes
- Anti‐Fungal (foot)
- Diabetic Testing & Aids
- Infant Dehydration Solutions
- Antiseptic & Wound Cleansers
- Diagnostic Tests & Monitors
- Infant Teething Pain Supplies
- Athletic Treatments
- Elastic Bandages & Wraps
- Insulin & Diabetic Supplies
- Band‐Aids
- Eye Care & Contact Lens Supplies
- Ostomy Products
- Birth Control & Contraceptives
- Family Planning Kits
- Reading Glasses
- Braces & Supports
- Fiber Laxatives
- Wheelchairs, Walkers & Canes
- Catheters
- First Aid Supplies
If you have any questions or need any additional information, please contact Mark Jackson.
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