On March 27, 2020, the CARES Act, a $2 trillion plus COVID-19 relief bill, was signed into law. This bill included significant steps forward in helping consumers protect the health and well-being of their families by reducing unnecessary trips to the doctor during this time of increased demand and creating even more value for the millions of Americans with flexible spending accounts (FSAs) and health savings accounts (HSAs).
The CARES Act brought two revolutionary changes for FSA/HSA users and dramatically improved their ability to use these accounts to support year-round health and wellness.
The first is that prescriptions are no longer required to purchase over-the-counter (OTC) medicines like Tylenol or Claritin with an FSA/HSA. The OTC Rx requirement had been a major inconvenience for account holders since 2010, and its repeal gives Americans more options to manage their medical conditions without putting additional stress on an already overburdened healthcare system.
The second is that FSA and HSA funds can now be used to purchase tampons, pads, and other feminine care products. Menstrual care products were previously considered only for general health by the IRS and not eligible for purchase with tax-free funds. This was unfortunate since these products are essential to women’s health and the fact that women spend an average of $144 or more out of pocket on feminine care expenses, according to Dollars and Sense. Thanks to the efforts to make these products eligible, they can now be purchased with tax-free funds.
As the culmination of a concerted advocacy effort, FSA and HSA account holders can now use their funds to purchase more of the products they need to be healthy. This was a huge win for the 70 million+ Americans who rely on these funds and it was thanks in part to the persistence of consumers like you!