The CARES Act Provides Help for Those with HSAs and FSAs

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The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law on March 27, 2020 with the purpose of helping employees out with benefit-related items during the COVID-19 crisis. The CARES Act repeals the Affordable Care Act’s exclusion of over-the-counter (OTC) medications from the definition of “qualified medical expenses”.  The bill is over 880 pages long, but to review the new rules regarding OTC provisions, see Sec. 3702 of the CARES Act.

Now people can once again, use the money they put away in their tax-advantaged Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to pay for OTC drugs and medical supplies. These items are eligible for reimbursement without the necessity of a prescription. Make sure to save your receipts when purchasing such items.

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