Tax treatment of OTC drugs

Does your company offer a health reimbursement arrangement, health savings account and/or flexible spending arrangement for employees? If it does, and you participate in the program, you know that the purchase of over-the-counter (OTC) drugs was an allowable expense. The new law prohibits people from using their reimbursement account money from an HRA, HSA or FSA for over-the-counter (OTC) drugs unless they have a doctor's prescription. Exceptions will be made for the purchase of insulin, which will not require a prescription.

When this is effective
These changes are required of all plans and are in effect as of the tax year beginning Jan. 1, 2011.

Find out how Priority Health is addressing this requirement.
This webpage provides a general overview of certain aspects of health care reform based on information currently available. It does not cover all of the requirements, and new information is released frequently. Information provided by Priority Health about health care reform should not be considered legal advice. [This is an educational tool only and the effect of reform may differ depending on your circumstances.]