Are over-the-counter (OTC) drugs still considered an eligible expense under flexible spending accounts (FSAs)?
Author: James O'Keefe, The Seabreeze Group LLC
Yes. However, the Affordable Care Act changed how OTC drugs are treated under an FSA. OTC medications now require a prescription from a health care provider in order to be reimbursed using the benefits of an FSA. The exception to this is insulin, which requires no prescription for reimbursement.