Healthcare Flexible Spending Account (FSA) Updates
Federal CARES Act allows Over-the-Counter drugs under FSA
The Federal Government recently passed the Coronavirus Aid, Relief and Economic Security Act or CARES Act that includes provisions pertaining to Healthcare Flexible Spending Accounts. Under the CARES Act is a special provision relaxing the OTC restrictions for healthcare spending accounts.
Below are the highlights of the CARES Act pertaining to Healthcare FSA's shared to us by our FSA vendor, P&A Group. These changes apply to employees who have an existing FSA through the State of Maryland.
- Over-the-counter (OTC) medications are now reimbursable under Flexible Spending Accounts without requiring a prescription or completing a Letter of Medical Necessity Form. This provision is retroactive to January 1, 2020.
- Menstrual care products are now reimbursable as eligible expenses, including tampons and pads.
Important Over-the-Counter Changes
Merchant Updates & Using your FSA Debit Card:
The new OTC eligibility will require an update to merchants’ eligible products. Every merchant will need to update their system to allow Benefit Cards to work at the point-of-service for OTC expenses. You should anticipate that not every merchant will have their systems updated right away. Industry experts have stated this process may take 4-6 weeks to complete and updated systems may differ on a merchant-by-merchant basis. In summary, approximately 17,500 OTC items will be adopted by merchants. Feminine care items will most likely be added within 4-6 weeks and will be available for purchase with your Benefits Card at that time.
Submitting Claims to P&A Group:
Claims may now be filed for OTC medications incurred in 2020. The quickest and most efficient way to file your reimbursement for these out-of-pocket expenses is to log into your account at md.padmin.com or through our mobile app. Click Upload Claim/Documentation. You can also fax or mail a claim form to P&A Group. Claim forms are also available when you log into your account.
Please note: If you are submitting a claim for previously denied OTC expenses incurred between January 1, 2020 and March 27, 2020, please submit the expense as a NEW claim.
If you have any questions, please contact P&A Group Monday – Friday, 8:00 am –10:00 pm ET at md.padmin.com or (844) 638-1900.