Changes to Flexible Spending Arrangements in 2011

September 23, 2010

Effective January 1, 2011, the cost of over-the-counter medicine cannot be reimbursed from a Flexible Spending Arrangement or Health Reimbursement Arrangement unless a prescription is obtained. The change does not affect insulin or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. This change is effective for purchases made on or after January 1, 2011. Claims made in 2011 for purchases made in 2010 are not affected. A similar rule goes into effect on January 1, 2011 for Health Savings Accounts and Archer Medical Savings Accounts. For more information, visit the Q&A on over-the-counter medicine and drugs on the IRS website.

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Changes to Flexible Spending Arrangements in 2011