| Over The Counter:
Health FSAs and Over-the-Counter Drugs 
On September 3, 2003 the IRS issued Revenue
Ruling 2003-102, which allows for FSA participants to
purchase certain over-the-counter medications without
a doctor’s prescription. Previously, a health FSA could reimburse medicines and
drugs only if they were prescribed. Now, under the Over-the-Counter
Drug Ruling, if certain requirements are met, a health
FSA can reimburse medicines and drugs that are available
without a prescription.
FSA participants (and prospective FSA participants) should
be pleased by this ruling for two reasons. First, everyday
items such as aspirin and cold medicine can now be purchased
with tax free FSA dollars, thereby broadening the scope
and value of the FSA. Second, participants with concerns
about year-end forfeitures now have the ability to use
their FSA dollars without the need for a doctor’s
office visit or prescription. Skip to Over-The-Counter expenses that are:
•
Reimbursable
• Reimbursable with Physician's
note
• Not reimbursable
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