Wednesday, October 27, 2010

Employers Can Retroactively Amend FSA Reimbursement Policies for OTC Medicines

Under the Patient Protection and Affordable Care Act, all prescriptions submitted for reimbursement through a health flexible spending account (FSA) will now have to be prescribed by a physician, even if the treatment is available over-the-counter.

Employers have until June 30, 2011 to amend their plans to reflect this change. However, the IRS says that employers will be allowed to apply this change retroactively back to January 1, 2011. That means that even if the policy is not in place by January 1, 2011, employers may still deny reimbursements for over-the-counter purchases made after that date. Purchases made before January 1 may still be eligible for reimbursement.

As the provisions of health reform kick in, this serves as a reminder to all MSPs to keep up with the latest news from your employer on how your medical benefits may change.

Source: BNA

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