Effective January 1, 2011, the rules changed regarding what is an eligible over-the-counter (OTC) item for reimbursement from a Medical FSA, HRA or HSA.
OTC drugs and medicines require a prescription
Health Account funds may no longer be used for OTC drugs and medicines (other than insulin) without a prescription from a medical provider. This means that these items can no longer be purchased with a benefit card. If an OTC drug or medicine is required to treat a specific medical condition, you may submit a claim for reimbursement, but you must include a prescription.
OTC Medical Supplies are eligible
OTC medical supplies (e.g. bandages, crutches, first aid kits) that are not drugs or medicines (or contain drugs or medicines) are an eligible expense and can generally be purchased with your benefits card or submitted for reimbursement. Since employers can limit what types of expenses are covered, please verify that OTC items are covered under your plan(s) before using your card or seeking reimbursement.
