How Healthcare Reform Impacts HSAs

2011 Over-The-Counter Changes

As a result of Health Care Reform, there will be changes to Health Savings Accounts (HSAs) as to what constitutes an eligible item. As the law currently stands — effective January 1, 2011 — Over-The-Counter (OTC) medicine or drugs (except insulin) will no longer be an eligible item for HSA reimbursement without a prescription.

At this time, the rule only applies to medicine and drugs. Other OTC items, such as bandages, blood pressure monitors, contact lens solution and similar items are not impacted.

OTC Item	Eligible in 2010	Eligible in 2011

Pain Relief Medicines	Yes	Only with a physician's prescription

Cough, Cold & Flu Medicines	Yes	Only with a physician's prescription

Allergy and Sinus Medications	Yes	Only with a physician's prescription

Baby Rash Ointment/Cream	Yes	Only with a physician's prescription

Contact Lens Supplies & Solution	Yes	Yes, no change

Reading Glasses	Yes	Yes, no change

Insulin and Diabetic Supplies	Yes	Yes, no change

Heat Wraps and Heating Pads	Yes	Yes, no change