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Asi quick reference guide
ASIFlex Quick Reference Guide
Over-the-Counter Medicine As of January 1, 2011
, The Health Care Reform legislation has directed that many over
the counter (OTC) medications will no longer be reimbursable with Flexible Spending
Account funds, unless purchased in conjunction with a physician’s prescription.
Following is a sample list of OTC medicine categories affected by these changes:
Anti-Itch/Anti- Stomach Ailment Remedies
As mentioned above, these changes will not take effect until January 1, 2011.
Therefore, you will be able to submit FSA claims for eligible OTC purchases without a
prescription through the end of 2010. The Health Care Reform changes do not alter your
ability to be reimbursed for equipment, supplies, and diagnostic devices. For example,
contact lens solution, bandages, hearing aid batteries, blood sugar test kits, etc. will
remain eligible OTC purchases for FSA reimbursement. Through December 31, 2010
over-the-counter (OTC) medicines and products are
reimbursable under a Health Care Flexible Spending Account (HCFSA) when the OTC
product is used for medical purposes. ASIFlex allows the same expenses as those allowed
by the IRS. Below is a description of the three IRS-defined categories, followed by
product examples for each.
Eligible OTC Medical Care Expenses
- Eligible items include medicines or products that alleviate or treat injuries or
illness for you and your dependents. These drugs and products are not cosmetic in nature, or merely beneficial to your general health. Claims for OTC medicines and products must include an adequate receipt accompanied by the ASI claim form. An adequate receipt states the name of the medicine or product, the date, and the amount paid. You do not need to provide a statement from a medical provider or indicate a diagnosis in order to receive reimbursement.
- Certain OTC products are considered dual-purpose, such as vitamins and
supplements. That’s because for some individuals, the product is used to alleviate
a medical condition, while others use the product for general health and well-
being,. These products may be eligible for reimbursement, but require a Letter of
Medical Necessity (LMN) stating your specific diagnosis or medical
condition, a recommendation to take the specific OTC medicine to treat your
condition, and documentation of the product and cost. ASI provides a Letter
of Medical Necessity (LMN) to assist you in submitting this information.
- If you have a condition that requires a specialized general purpose item (i.e.
special laundry detergent due to allergies) and you have a letter of medical necessity, you can claim the difference in cost between the specialized detergent and the regular detergent. You must submit a statement or printout showing how much a “comparable” non-medicated product costs.
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