How Health Reform affects your FSA
The Patient Protection and Affordable Care Act (PPACA) brought changes to health care that affect Flexible Spending Accounts (FSAs). Confused about health care reform and how it affects your FSA? FSAstore.com has summarized two changes that affect your FSA.
2011 OTC changes
- In 2011, Internal Revenue Service (IRS) regulations changed how certain over-the-counter (OTC) products are processed through FSAs. Only OTC items containing medicines (except for insulin) require a prescription to be reimbursed by your FSA.
- You can still buy thousands of FSA eligible products at FSAstore.com without a prescription. Check out our many different categories including elastics/athletic treatments, foot care, sun care, first aid, and family planning.
- Our FSA Eligibility List can help you find which products require a prescription and which products do not.
2013 Spending Cap
- Starting in 2013, there will be a yearly cap on FSA contributions of $2,500 per person.
- You can work around the cap if you and your spouse are offered an FSA by different employers, as you’ll both be able to elect $2,500 in separate FSAs – a combined $5,000 a year.
- Dependent Care FSA yearly contributions remain the same at $5,000 per household, $2,500 for married couples filing separately.
- If you want help estimating your yearly spending for next year, you can consult our FSA Calculator.
You should check with your FSA plan administrator about your FSA plan limits for 2013.