Effective January 1, 2011, most OTC medicines that you purchase will not be eligible for reimbursement under your Flex Spending Account. Just prescription drugs will be allowed going forward. If your employer’s plan has a grace period that lets you use money from your 2010 plan to buy items in the first few months of 2011, you will still need to get a doctor’s prescription. Insulin and diabetes supplies can still be bought without a prescription. Items such as eyeglasses, contacts, blood pressure monitors and other medical supplies will still be covered.
Beginning in 2013, you will only be allowed to contribute $2,500 to your Flex Spending Account in accordance with the new health care mandates. (A husband and wife can each put up to $2,500 into their separate accounts.) With this in mind, if you know that you will be shelling out a large amount of money for medical or dental expenses in the near future that your current health plan does not cover, you may wish to have these procedures performed in the next year or two so you can use your pre-tax money to pay for these expenses.
For more information on Flex Spending Accounts, go to www.savesmartspendhealthy.com.