Over-the-Counter Medications Requiring a Prescription after January 1, 2011

Effective January 1, 2011, over-the-counter (OTC) medicines and drugs now require a prescription to be reimbursed by a healthcare spending account. On September 3, 2010, the IRS provided clarification that an OTC drug is considered prescribed for purposes of the new rule if the individual obtains a "prescription" for such medicine or drug. This ruling applies even if the medicine or drug may also be purchased without a prescription. A prescription is defined as an electronic or written order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual authorized to issue a prescription in that state.

To learn more about the new OTC guidelines and how they impact you, click here.