Over-the-Counter Medicine: FSA Eligibility

Over-the-counter medicine is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA) and limited care flexible spending account (LCFSA) with a prescription from a physician. Over-the-counter (OTC) medicine is not eligible for reimbursement with a dependent care flexible spending account (DCFSA).

Why do over-the-counter medicines require a prescription?

As a result of the passage of the Patient Protection and Affordable Care Act (PPACA), as of January 1, 2011, a new set of uniform standards were put into place regarding the reimbursement of medical expenses. To reimburse the cost of over-the-counter medicines and drugs under FSAs, HSAs and other consumer spending accounts, account holders must submit a prescription from a physician for each product. This does not apply to the reimbursement of the cost of insulin, but common everyday products like pain relief medications, cold & flu products and many more will require a prescription for full reimbursement.

A 2012 study commissioned by the Consumer Healthcare Products Association found that the use of OTC medicine would save the U.S. healthcare system $102 billion per year, as much of the savings comes from the utilization of low-cost medicines as opposed to drugs that must be filled by a pharmacist. However, not every OTC product is covered under this distinction, as products like bandages, first aid supplies, diagnostic products and more do not require a prescription.

How does the prescription process work?

The reimbursement of OTC medicines begins by requesting prescriptions for medications during a routine doctor's appointment, or by following the Prescription Process found on FSAstore.com and HSAstore.com. Each of our products are marked with a blue "Rx" symbol for those that require a prescription for reimbursement, as well as red checkmarks that mark the products as free to purchase without a prescription.

Over-the-Counter Medicine: Best Sellers

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Additional Information

FSAstore.com's Prescription Process can help. Click Here to learn more.

Specifically Not Covered

Not eligible without prescription

Legal Information / Regulations

Prescription Required. Information Letter (IL) 2009-0209; Notice 2010-59.



AZ-PROD-WEB02 5/21/2019 11:35:19 AM