Over-The-Counter FSA and HSA Expenses Now Covered Under COVID-19 CARES ACT

Over-The-Counter FSA and HSA Expenses Now Covered Under COVID-19 CARES ACT

The COVID-19 Care Act Bill includes two key provisions that are related to over-the-counter FSA and HSA expenses which are effective immediately and retroactive to January 1, 2020.

The changes are:

Over the Counter (OTC) Rx Repeal: Prescriptions or doctor’s notes will no longer be required for over-the-counter (OTC) drugs, including items like Tylenol, Claritin, Antacids, etc. when purchased with a FSA or HSA. This relief will mean that employees and their family members with a FSA or HSA account, can now buy the OTC medicines they need to stay healthy.

Menstrual Care Products: The bill expands the definition of qualified OTC items to include menstrual care products as eligible under a FSA or HSA.

Please note: It may take pharmacies and other vendors of OTC expenses several weeks to get their inventories set correctly to allow members to use their FSA and HSA cards for these purchases going forward.

If a member receives a denial on their Total Benefits Administration FSA card for these products, they can manually submit the claims for reimbursement with their receipt if paid out of pocket. For denials on the PayFlex HSA account, members can purchase the items and then reimburse themselves from their PayFlex online portal.