According to the Affordable Care Act, the cost of over-the-counter medicines or drugs can be reimbursed from a Cafeteria Plan / Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) if you have a prescription.
The Internal Revenue Service has issued new guidance allowing the continued use of FSA and HRA debit cards for the purchase of prescribed over-the-counter medicines and drugs. The new guidance modifies previous guidance to permit taxpayers to continue using FSA and HRA debit cards to purchase over-the-counter medications for which the taxpayer has a prescription. Effective after Jan. 15, 2011, in accordance with the new guidance, this use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed medicines or drugs.
The procedures include requirements that a prescription for the medication be presented to the pharmacy or the mail-order or web-based vendor that dispenses the medication and that proper records be retained.