FSA... HSA …PPACA … OTC… Rx… WTH? SOS?

Update: As a result of the CARES Act passed in March 2020, OTC medicines are now fully FSA/HSA eligible without the need for a prescription.

In short, the Rx requirement doesn't apply to medical care items that aren't medicines or drugs. In fact, there are thousands of OTC items that can be purchased without a prescription. Everyday items like bandages and sunscreen, to more elaborate items like hi-tech skin rejuvenators and remote-powered foot circulators, can be purchased with FSA or HSA funds, without any additional documents needed.

But, the OTC remedies we're discussing here are a little different.

These medicines – the same ones you find on the shelves at your local drug store – contain an active medical ingredient designed to improve a specific condition. So, they require a prescription for purchase with an FSA or HSA.

Some examples include:

We know what you're thinking – "I can get these items at the checkout counter at my grocery store!" You might think this is inconvenient, but don't let it prevent you from using your FSA or HSA to purchase these items.