The Treasury Department and the IRS have announced that over-the-counter drugs can be paid for with pre-tax dollars through a company’s flexible spending account. The following is an explanation of what can be claimed and how to submit claims. The new ruling, Rev. Rul. 2003-102, is very broad in its definition but specifically lists antacids, allergy medicines, pain relievers, and cold medicines available without a physician's prescription as examples of medical care under its definition. Expenses that are merely beneficial to the general well-being or health of a person are not considered medical care. In order to claim a reimbursement of over-the-counter (OTC) drugs, the following claims submission procedures must be followed: 1. A completely filled out and signed claim form must be submitted with receipts. Signing the claim form indicates that you are purchasing the OTC drugs for yourself or your legal dependents. (If you are purchasing the OTC drugs for someone other than your legal dependents, even if you pay for them, they are not eligible for reimbursement.) 2. Please write “OTC” on the claim form next to the items being claimed to indicate they are over-the-counter medications. 3. Attach itemized receipts. Generally for over-the-counter items, only a cash register receipt is provided. In order to be reimbursed, an itemized receipt is necessary to meet third- party substantiation requirements, and ensure that the claims processors can see exactly what is being claimed. Employees should circle the items being claimed on the receipt. (Please do not “highlight” the items. Sometimes when highlighters are used on receipts, the highlighted portion is blackened during the scanning process and the receipt cannot be read.) 4. Submit completed claim form and receipts to National Benefit Services, Inc. by faxing to 1 -801-355-0928. Toll free 800-478-1528.
