Health Care Pre-Tax Expense Account

Over-the-Counter Drugs

According to a recent federal ruling, over-the-counter (OTC) drugs and medicines may now be reimbursed under the Health Care Pre-Tax Expense Account.

Generally, OTC drugs and medicines purchased to alleviate or treat personal injuries or sickness are reimbursable under the Health Care Pre-Tax Expense Account. However, expenses incurred to benefit one's general health are not reimbursable. Eligible expenses fall into two categories: medical-only expenses and dual-purpose items.

You may submit claims for expenses incurred on or after September 3, 2003. Claim forms are available online.

Note that you must provide the appropriate documentation when submitting your expenses. For all expenses (medical-only expenses and dual-purpose items), you must provide:

1. Itemized receipt showing the product name, cost, and date of purchase

2. Statement from you with the name of the patient (you or your covered dependent), declaring that the patient has a medical condition for which the over-the-counter item is needed

For dual-purpose items you must also provide a third piece of documentation:

3. Medical practitioner's note stating the patient's name, that the patient has a specific medical condition, and that the over-the-counter drug is recommended to treat the condition