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Over-The-Counter Drugs and Medicines Now Reimbursable Through A Medical Care FSA or HRA
On September 3, 2003 the Internal Revenue Service issued Revenue Ruling 2003-102 making over-the-counter drugs and medicines reimbursable through Medical Care Flexible Spending Accounts (FSA) and Health Reimbursement Accounts (HRA).
At a glance, the Ruling provides that:
- Over-the-counter drugs and medicines are those drugs and medicines available without a prescription that are used to "alleviate or treat personal injuries or sickness."
- Eligible over-the counter drugs and medicines are items such as antacids, allergy medicines, pain relievers and cold medicines.
- Toiletries (e.g. toothpaste), cosmetics (e.g. face creams) and sundry items are not considered a "drug or medicine" and are not eligible for reimbursement.
- Dietary supplements, (e.g. vitamins), when purchased for general health purposes are not eligible for reimbursement.
- This ruling does not apply to itemized deductions for medical expenses for income tax purposes, thus the benefit can only be realized through programs such as an FSA or HRA.