Posted 3 months ago - by

CARES Act increases the number of FSA eligible products

The recently passed CARES (Coronavirus Aid, Relief, and Economic Security) act offers some important updates for pre-tax health care plans (FSA’s, HSA’s, and HRA’s). In addition to direct payments to many eligible Americans, this act also permanently reinstates coverage of OTC (over the counter) drugs and medicines as eligible for reimbursement for pre-tax plans, without need for a prescription.

What this means:

Prescriptions will no longer be required for over-the-counter drugs, including items like Tylenol, Claritin, Tamiflu, etc. when purchased with an FSA, HSA, or HRA. This will be retro-active to January 1, 2020. Prescriptions have been required since 2011,causing unnecessary trips to the doctor, or payment with after tax dollars.

The act also allows for menstrual care products to be eligible as well. The bill indicates that this addition means a “tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation” will qualify.

Payroll Systems and PS Administrators are able to process claims for OTC products immediately. We are also waiting for an updated list of eligible products and implementation of this list by participating merchants. In the meantime,debit card acceptance on OTC purchases may be inconsistent depending on the merchant and whether or not they have updated their systems.

For more information, contact us.

To make pre-tax purchases online with your Amazon Prime account, visit Health Shopper.

Related Posts

How to Handle Coronavirus-Related Layoffs in the Most Responsible Way

In addition to the widespread anxiety the current pandemic has caused, layoffs have become inevitable for many organizations The state of local and global economies is rapidly fluctuating- leaving...

Read more...

Are You Forging a Healthy Post-COVID19 Pay Strategy?

  The economic impact that this current pandemic has had, has left companies with a higher degree of caution when planning compensation & bonuses for 2021 and onward Some employers are...

Read more...

4 Questions That Help Determine Why An Employee Is Struggling While Working Remotely Through COVID-19

Working from home has become the standard work-around to the current pandemic While some are adapting seamlessly, others are still having trouble with their new work environment How do you assist...

Read more...

9 Tips For a Safe Return to the Workplace

A recent survey of US adults demonstrated that most employed Americans are looking forward to transitioning back to working in the office The survey, conducted on April 29 through May 1st by the...

Read more...

3 Tips on How to Properly Navigate Coronavirus Sick Leave Policies

The current pandemic is still on-going and the effects it has had on the workplace will continue to linger long after With the introduction of the CARES ACT came several responses on the local level,...

Read more...

The Pros of Dependent Care FSA Plans and Caregiving Benefits Post–COVID-19

As you gear up to resume operations, you may find that some employees will have a hard time with the logistics of transitioning back into a regular routine Reverting to normal hours of operations may...

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.