March 2, 2004

Health Care Flexible Spending Accounts for Over-the-Counter Drugs

This fall the Treasury Department and Internal Revenue Service announced that over-the-counter drugs and medicines can now be reimbursable through Health Care Flexible Spending Accounts (FSA).

At a glance, the ruling provides that:
• Over-the-counter drugs and medicines are those available without a prescription that are used to “alleviate or treat personal injuries or sickness” such as antacids, allergy medicines, pain relievers and cold medicines.
• Toiletries (e.g. toothpaste), cosmetics (e.g. face creams) and sundry items are not considered a “drug or medicine” and are not eligible for reimbursement.
• Dietary supplements (e.g. vitamins) are considered for general health purposes, and are also not eligible for reimbursement.
• This ruling does not apply to itemized deductions for medical expenses for income tax purposes. Thus, the benefit can only be realized through programs such as an FSA.

For more information about FSA accounts contact Benefit Services at 994-9620.

Send feedback to: bygeorge@gwu.edu