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Cormier & Rea announce additional office at 483 Summer St, Ste 2000, Arlington, MA

Flexible Spending account changes are going into effect January 1, 2011

 

The Patient Protection and Affordable Care Act established that the cost of over-the-counter medicine or drugs cannot be reimbursed from a FSA unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after January 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan. A similar rule goes into effect on January 1, 2011, for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs).

 What does this mean to you?  If you over contributed in the past, you had the abilty to buy over the counter medications to use up the excess funds and avoid losing them.  Starting in 2011 you will not be able to do this, so you will need to be more careful in deciding how much to contribute.


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