$2 TRILLION STIMULUS PACKAGE EXPANDS ELIGIBLE ITEMS FOR TAX-ADVANTAGED PLANS
March 27, 2020 – Today President Donald Trump signed a $2 trillion stimulus package into law to provide aid to American businesses and individuals in response to the COVID-19 (coronavirus) health crisis.
This expansive legislation included several provisions that directly impact flexible spending account (FSA), health reimbursement account (HRA) and health savings account (HSA) participants. These provisions will be retroactive to January 1, 2020.
- Repeal of Prescription Requirement for Over-the-Counter (OTC) medications. OTC medications will no longer require a prescription for purchase. As a background, OTC medications have required a prescription since the passage of the Affordable Care Act in 2011. This repeal means that these items may be purchased with a debit card directly at a retailer without additional claims filing by the participant.
- Menstrual Care Products Now Eligible. Menstrual care products are also eligible for reimbursement retroactively back to January 1, 2020. Menstrual care products include “tampons, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation”. These items will also be eligible for purchase directly at a retailer without additional claims filing by the participant.
Time may vary among retailers as they update their point-of-sale Inventory Information Approval Systems (IIAS) individually. If a participant attempts to make a purchase for the newly approved items using a debit card and the transaction declines, a claim for reimbursement may be filed. OTC medications and menstrual care products continue to be excluded from limited health care FSAs (LFSAs) as these accounts are limited to dental, vision and optional post-deductible expenses only.
We will provide additional information regarding these updates as it becomes available and will be updating materials to reflect this change. Please contact your account manager or business development partner at (800) 532-3327 with any questions or concerns.
About Flores
Flores is a leading national administrator of tax-advantaged reimbursement plans including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs) and Commuter Benefit Accounts (CBAs). In addition to these account-based benefit options, they also handle COBRA and other direct bill services to meet the compliance needs of the employers they serve. In 2018, Flores introduced life.balanced. Reimbursement Accounts (LBA), an affordable post-tax lifestyle reimbursement account for the culture-driven employer. Based in Charlotte, NC, Flores has emerged as the leader in the CDHP market through a service model founded upon innovative technology, dedicated professionals, and an uncompromising commitment to superior service. For more information, visit the Flores website and follow them on LinkedIn.
- Cindy Bistany
- Director of Business Development and Strategic Alliances
- (828) 693-3595
- cindy@flores247.com
- Clay Peddycord, GBA, CFC
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- clay.peddycord@flores247.com
- Aaron Hunt, MBA, CDHC, HSAe, Certified COBRA Administrator
- Director of Business Development and Strategic Alliances
- (800) 532-3327
- aaron.hunt@flores247.com