GREAT NEWS – Federal Benefit Increases to FSA, HSA & HRA Plans
The CARES Act signed into law on Friday, March 27th, includes more than financial cash and loan stimulus to families and businesses.
The Act includes IMPORTANT CHANGES for users of FSAs (Flexible Spending Accounts), HSAs (Health Savings Accounts) and HRAs (Health Reimbursement Arrangements). The Act allows:
* OTC DRUGS (over-the-counter) are now ELIGIBLE to be pre-taxed (previously required a doctor’s prescription)
THINK – Ibuprofen, Tylenol (handy for these times of crisis)
* MENSTRUAL CARE products are now ELIGIBLE expenses as well
THINK – tampons, pads, liners, cups, sponges or similar products
* TELEHEALTH services can now be covered “pre-deductible” on HSA “High Deductible Health Plans” plans (previously required to meet plan deductible first).
NOTE – this is a temporary provision through December 31, 2021.
The changes to eligible expenses are retroactive to January 1, 2020.
Author: Lambert Hsu. For more information, contact your Benefit Pro Advisor.