Exciting news in the benefits world! The CARES Act, that was signed into law on March 27th, makes access to over-the-counter (OTC) drugs easier for FSA, HRA and HSA participants.

Here’s what you need to know:

  • Prescriptions are no longer required for OTC drugs to be considered an eligible expense. FSAs, HSAs and some HRAs can now reimburse OTC drugs without a prescription. Participants will no longer need to provide prescription for OTC drug reimbursements effective immediately.

  • Menstrual care products such as a tampon, pad, liner, cup, sponge, or similar product are now eligible expenses.

These changes are permanent and apply to OTC drugs and menstrual care products purchased on or after January 1, 2020. 

Please note it will take some time for merchants to update their payment processing standards so that debit cards related to FSA, HRA and HSA plans can be accepted. For now, all participants will need to submit a request for reimbursement.

Additionally, there are two noteworthy changes to HSAs.

  • The CARES Act temporarily relaxes HSA eligibility rules. More specifically, telemedicine services of any kind can be provided under a high deductible health plan (HDHP) or on a stand-alone basis without it jeopardizing a person’s ability to make contributions to an HSA.
  • Recently, IRS announced the deadline to file 2019 federal income tax returns has been extended to July 15, 2020. As a result, HSA contributions for 2019 up to the maximum limit can be made until July 15, 2020, and these contributions will be considered tax-deductible for federal income purposes. 

Contact Total Benefit Solutions, Inc at 215-355-2121 with any questions.