Patient Protection and Affordable Care Act and the Health Care and
Education Reconciliation Act of 2010
Changes to Flexible Spending Arrangements
Effective Jan. 1, 2011, the cost of an over-the-counter medicine or drug cannot be reimbursed from Flexible Spending Arrangements or health reimbursement arrangements 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 Jan. 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. Employers and employees should take these changes into account as they make health benefit decisions for 2011.
Effective 2013, the limit for the Health Flexible Spending Account will be $2,500.00