Flexible Spending Account Changes
As of January 1, 2011, the costs of over-the-counter medications will be reimbursed under a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Account (HRA) only if the medications are purchased with a doctor’s prescription. These restrictions do not apply to the purchase of insulin.
For 2013, a $2,500 limit takes effect as required by the Affordable Care Act.
Generally, if you don’t use all of the money you’ve contributed by the end of the plan year, you lose that money (although your employer may allow a grace period of up to 2 ½ months after the end of the plan year for employees to use the money). For this reason, it’s important to base your contribution on an estimate of the qualifying expenses you will have during the year.
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Note: Flexible Spending Accounts are sometimes called Flexible Spending Arrangements. Health Reimbursement Accounts are sometimes called Health Reimbursement Arrangements.
Posted on: December 2, 2010
Last updated: January 14, 2013