Health Care Alert: Navigating Health Care Reform (September 22, 2010)
IRS Issues Guidance on Health Care Reform Over-the-Counter Drug Restrictions


The Patient Protection and Affordable Care Act (the “Affordable Care Act”) added a new Section 106(f) to the Internal Revenue Code (the “Code”).  Under Section 106(f), a new uniform standard applies to health flexible spending accounts (“health FSAs”) and health reimbursement arrangements (“HRAs”).  Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained.

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