Prescription Drug Discount Program: FSA Eligibility

A fee to participate in a prescription drug discount program is not eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), health reimbursement arrangement (HRA), limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What is a prescription drug discount program?

Prescription drug discount programs are a form of patient assistance that is offered by drug manufacturers, nonprofit groups and state governments to help individuals and families cover the cost of prescription drugs if they are unable to afford them. These programs vary greatly based on the sponsor of the initiative, such as state-sponsored programs that are designed for people with specific medical conditions like HIV/AIDs or diabetes to nonprofits that will cover a wide range of potential prescriptions. In most cases, these organizations and state-sponsored initiatives do not charge a fee to enroll.

However, if an individual who cannot afford his/her prescriptions is looking to invest in mail order pharmacies or other subscription services that can cut the cost of prescription drugs but require a fee to enroll, this added expenditure would not be eligible for reimbursement with a consumer-directed healthcare account. FSAs, HSAs, HRAs and others can only cover products and services that relate to the treatment or prevention of a legitimate medical condition, so therefore these subscription or enrollment fees would not be eligible for reimbursement with any consumer-directed healthcare account.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB02 11/19/2017 10:38:00 AM