Over-the-Counter Medications Update for HCSA Enrollees
An important update recently occurred to the rules that govern use of Health Care Spending Account (HCSA) funds for purchasing over-the-counter (OTC) medications. Effective January 16, 2011, under certain conditions, HCSA debit cards may now be used to purchase OTC medications with a prescription at pharmacies, drug stores, grocery stores with pharmacies, mail-order pharmacies and web-based vendors that sell prescription drugs. The new rules also allow a physician’s office or hospital to permit debit card transactions for prescribed OTC medications, but only if the physician’s office or hospital has implemented certain steps that make them eligible to process HCSA debit card transactions.
These changes update a previous ruling that became effective January 1, 2011 that disallowed use of HCSA debit cards to buy over-the-counter (OTC) medicines with or without a prescription.
Helpful tips to remember if you want to use HCSA funds to pay for OTC medications include:
- Get a prescription from your physician for the OTC medication.
- Present your prescription to the pharmacist at the time of purchase and make sure the pharmacy issues an RX number for your OTC medication.
- Visit www.sig-is.org to view a list of participating merchants that should be able to process HCSA debit card transactions for your prescribed OTC medications. (In the left hand column of the site, look under the “Publications” heading for the documents titled “IIAS Merchants” and “90% Rule Merchants.” Or, ask your preferred merchant if they are able to accept your debit card for OTC medications and are able to issue you a prescription number for those purchases.)
It is important to note that HCSA debit cards still cannot be used to purchase OTC medications at convenience stores or grocery stores that do not have a pharmacy and that a prescription is still required to use HCSA funds for OTC medicines and drugs regardless of where you buy them and whether you are using an HCSA debit card or paying out-of-pocket and submitting a reimbursement request.
Remember that you can continue to use your HCSA funds to purchase OTC supply items that are not considered a medicine or drug without a prescription (i.e., bandages, splints, contact lens solution, etc.). Insulin also remains an eligible expense with or without a prescription.
For more information on Flexible Spending Accounts, visit our FSA page. If you have questions about these updated rules concerning use of HCSA funds for prescribed OTC medications, please contact Meritain Health at 1-800-748-0003.
