Over-The-Counter Items: FSA Eligibility

Over-The-Counter Items: eligible with a Flexible Savings Account (FSA)
Over-the-counter (OTC) items are eligible on an FSA without a prescription. OTC drugs and medicines are eligible as well, but require a prescription for reimbursement. These items are marked with a blue "Rx" logo on our website, while items not requiring a prescription are marked with a red check mark. OTC items reimbursement is eligible with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Over-the-counter items reimbursement is not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

What are over-the-counter items?

A 2012 study commissioned by the Consumer Healthcare Products Assocation found that the use of OTC medicine would save the U.S. healthcare system $102 billion per year, as much of the savings comes from the utilization of low-cost medicines as opposed to drugs that must be filled by a pharmacist. However, not every OTC product is covered under this distinction, as products like bandages, first aid supplies, diagnostic products and more do not require a prescription. Only over-the-counter items that contain a medical ingredient require a prescription for reimbursement, so this is a helpful piece of information to keep in mind when purchasing OTC products with a consumer-directed healthcare account.