On September 3, 2010, the Internal Revenue Service (“IRS”) issued Notice 2010-59, which provides additional guidance on the restrictions for reimbursement of over-the-counter (“OTC”) medicines and drugs, as required by health care reform. The restrictions, which apply to expenses incurred after December 31, 2010, require that certain employer-provided Flexible Spending Accounts (FSA’s) and other plans can only reimburse medicines or drugs, excluding insulin, if the particular medicine or drug is “prescribed”.
Please see the Alliant Compliance Alert for more information and the link to the IRS notice.
