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Yes. The health care reform law has revised the definition of “qualified medical expenses” for purposes of reimbursement from health FSAs and health reimbursement arrangements (HRAs), and distributions from Archer medical savings accounts (Archer MSAs) and HSAs. Under the new definition, qualified medical expenses include amounts paid for medicines or drugs only if the medicine or drug is a prescribed drug (determined without regard to whether the drug is available without a prescription) or is insulin. This means that money from these accounts cannot be used to pay for over-the-counter medications that do not have a prescription. This definition is effective January 1, 2011. Expenses for such non-prescribed over-the-counter medications must be incurred prior to January 1, 2011 to be reimbursed. Additionally, there is no grandfathering of existing plans. |
