business
IRS issues guidance for health spending accounts
NEWS IN BRIEF — Posted Sept. 27, 2010
The Internal Revenue Service has published online documents to help people and companies deal with the changes to tax-favored health reimbursement accounts mandated by the new health system reform law. The documents were published online Sept. 3 (link).
The agency took this action because next year, over-the-counter drugs not prescribed by a physician no longer will be considered health expenses eligible for reimbursement from flexible spending, health savings or medical savings accounts.
The change does not affect insulin obtained without a prescription or medical equipment such as crutches. Insurance co-pays and deductibles, as well as prescription drugs, are still considered eligible expenses.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/09/27/bibf0927.htm.
