FAQs

Who decided over-the-counter medications such as Senokot® Tablets, Senokot-S® Tablets, and SenokotXTRA® Tablets could be paid for using the pre-tax funds in Healthcare Reimbursement or Flexible Spending Accounts?

The Treasury Department and Internal Revenue Service (IRS) issued guidance clarifying that reimbursements for nonprescription drugs by an employer health plan are excluded from income. Thus, reimbursements by health flexible spending arrangements (FSAs) and other employer health plans for the cost of over-the-counter drugs available without prescription are not subject to tax if properly substantiated by the employee.

• By purchasing over-the-counter medications through your FSA, your savings will be roughly equal to your federal income tax rate. Depending on your specific situation, this could represent significant savings on products you already purchase.

You should contact your benefits manager or your human resources department for specific details.

Making a claim is easy. You will generally need to submit the following:

• The original receipt from your purchase(s)
• A completed claim form (provided by your administrator)
• Any other relevant information required by your employer

If you are self-employed, you may be able to enjoy these same benefits through your Medical Savings Account. Contact the IRS or your accountant for more information.

You can use pre-tax funds to purchase over-the-counter products used to "alleviate or treat personal injuries or sickness" for you, your spouse, and your children or other dependants.

This includes medicines you purchase throughout the year such as: laxatives, stool softeners, antacids, cold medicines, aspirin, pain relievers, and allergy medicines. You can also use the funds to purchase cold sore treatments and smoking cessation products.

Dietary supplements, including vitamins, are covered when used to treat a current illness but not when used for general health purposes.

More detailed information can be found on the Internal Revenue Service (IRS) website (http://www.irs.gov) and on the Consumer Healthcare Products Association (CHPA) website (http://www.chpa-info.org)