Reform's changes to flex accounts affect you and your staffers
Heads up: You may want to let staffers know time is running out for them to use flexible spending account (FSA) money on over-the-counter medications like Tylenol or allergy pills.
Starting in 2011, without a prescription, all over-the-counter medications (except for insulin) will no longer be reimbursable through FSAs.
If employees want to get reimbursed through their FSAs on OTC meds, they’ll need a doctor’s note.
It’s important to note that the reform law only affects over-the-counter medications. So let staffers know they can still use their FSA money on common items like bandages, gauze, etc.
Of course, that’s just one of the changes to FSAs under the reform law — and employers will likely have to take certain steps on their end to comply with the law.
Here are two moves most employers will have to take in order to comply with reform’s changes to FSAs in the near future:
- Checking in with their FSA administrator to ensure employees’ OTC purchases aren’t being reimbursed with FSA debit cards, and
- Editing all plan documents, summary plan descriptions, materials, etc., so that all workers are notified about changes to FSA accounts.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
The more invoices a business is sending out, the better the health of the company. After all, a lot of invoices in the pipeline means a com...
Employers will see clearer control over pharmacy benefit costs and their impact on the income statement, with Finance and HR sharing more e...
In April, Arkansas Governor Sarah Huckabee Sanders signed legislation making it illegal for Pharmacy Benefit Managers (PBMs) to own or oper...
Financial wellness programs often sound expensive or complex, but the truth is that one simple step — helping employees better unders...
The Department of Labor (DOL) is once again taking a neutral stance on offering a certain investment option to retirement plan participants...
Imagine getting a Notice of Final Determination from a state revenue department that said it wasn’t going to recognize a use tax exem...
