House and Senate to Allow Reimbursement for OTC Drug Expenses

Bills Now in House and Senate to Allow Reimbursement for OTC Drug Expenses?

The bill would overturn the provision in the Affordable Care Act that prohibited FSAs, HRAs, and HSAs from reimbursing expenses for over-the-counter drugs unless the drug is insulin or prescribed by a physician. H.R. 1922 would also allow feminine hygiene products to be treated as a qualified medical expense that could be reimbursed through an FSA, HRA or HSA. This change would be effective after December 31, 2019.

The ACA provision that prohibited FSAs, HRAs and HSAs from reimbursing expenses for over-the-counter drugs has resulted in increased medical costs as people either had to see their doctor to get a prescription for over-the-counter drugs or purchased higher-cost prescription drugs in order to use their FSA, HRA or HSA for reimbursement.

These bills are tax bills which will be referred to the respective Congressional tax writing committees – the Ways and Means Committee in the House and the Finance Committee in the Senate.

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This is a republished excerpt. Read more here at the article’s original source: https://ecfc.org/news/446463/Bills-Now-in-House-and-Senate-to-Allow-Reimbursement-for-OTC-Drug-Expenses.htm