Vol. 38, No. 18

4-7-2004
By: Susan Wittstock

Over-the-counter medications eligible for FSAs

Flexible spending accounts just got a little more flexible.

“We’re very excited about a couple of upcoming changes to the Health Care Flexible Spending Accounts program, said Susan Marsico, director of benefits.
Health Care Flexible Spending Accounts can now be used to reimburse the cost of some over-the-counter medicines and drugs. Previously, only prescription drugs qualified for the account.

“The IRS has extended its definition of medical expenses so we’re changing our program to align with the new guidelines,” said Kim Videkovich, assistant director of benefits.

Items that are eligible for reimbursement include, among others: medications for allergies, cold and flu, and muscle and joint pain relief; diaper rash ointment; pregnancy tests; thermometers; and antacids. Also eligible, with a medical practitioner’s recommendation, are things like dietary supplements, hormones and nasal spray. Examples of ineligible items include lip balms, feminine hygiene products, toothbrushes and suntan lotion.

Participants will need to wait until they have accumulated $25 worth of receipts before filing a claim for reimbursement under the program. To document the reimbursement, the receipt must include the name of the store, the date of purchase, and the item’s name and cost. The $25 requirement is waived if a participant has less than that amount left in his or her account.

Ohio State also offers a Dependent Care Flexible Spending Account, which can be used to reimburse expenses for daycare for dependents under age 13 as well as for dependents of any age who are incapable of self care.

Participants in the flexible spending programs can contribute a minimum of $104 per year to the Health Care FSA and $234 per year to the Dependent Care FSA (up to a maximum of $4,992 for either account) through payroll deduction on a pre-tax basis. They can then request tax-free reimbursements for eligible expenses.

April’s open enrollment period is the only time that faculty and staff can sign up to participate or to re-enroll in the programs, which run for one year and begin on July 1. Any funds left in the account at the end of the year are forfeited.
About 2,300 faculty and staff currently take advantage of the Health Care FSA and about 600 faculty and staff are enrolled in the Dependent Care FSA program.

“We’d like to see those numbers grow,” Videkovich said. “In July, we’ll also be introducing a new online method for checking the status of your account. You’ll be able to check what claims have been processed and how much money is left in your account. This should be a lot easier and more convenient for participants than the current system of quarterly statements.”

For details, visit http://hr.osu.edu/benefits/flex.htm

onCampus Home