FSA Eligible Expenses Expanded

FSA Eligible Expenses Expanded

Know Your Benefits HeaderOn March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law.

In addition to providing direct financial assistance to Americans, the CARES Act repeals the Medicine Cabinet Tax provision of the Affordable Care Act (ACA), expanding the list of qualifying expenses that can be purchased with flexible spending accounts (FSAs).

CARES Act and Qualifying Medical Expenses

Under the CARES Act, the definition of a qualifying medical expense now includes certain over-the-counter (OTC) medications and products.

Examples of expenses that are now eligible medical expenses under the CARES Act include, but are not limited to, the following:

  • Allergy medicine
  • Analgesics (e.g., vaporizing rub)
  • Anti-diarrhea medicine
  • Anti-gas, Antacid
  • Antihistimines
  • Anti-inflammatory medication
  • Aspirin
  • Bandages
  • Burn treatments, OTC
  • Calamine lotion
  • Cold and flu medicine
  • Cold sore remedies
  • Cold/hot packs
  • Condoms
  • Contact lens solutions/cleaners
  • Cotton balls (sterile)
  • Cough drops, cough suppressants
  • Decongestants
  • Diaper rash treatments
  • Elastic wraps
  • Expectorants
  • Eye drops (nonmedicated)
  • Feminine hygiene products
  • Fiber laxatives
  • First-aid kits
  • Heating pads
  • Hemorrhoid treatments
  • Insect bite/sting medicine
  • Medicated lip balm/cream
  • Menstrual pain relievers
  • Nicotine patches, gum and lozenges
  • OTC pain relievers
  • Pregnancy test kits
  • Prenatal vitamins
  • Reading glasses
  • Stomach remedies
  • Sunburn treatments
  • Sunscreen
  • Thermometers
  • Throat lozenges/cough drops

Please note, this list is not all-encompassing. For more information on your medical spending account, please contact your plan administrator.

Source: www.irs.gov/publications/p502/ar02.html#en_US_publink1000178947 and www.congress.gov/bill/116th-congress/senate-bill/3548/text#toc-HC8C9461E6EB94BA89FCB4673D46FDC9F

This Know Your Benefits article is provided by Reseco Group and is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. © 2020 Zywave, Inc. All rights reserved.

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