The Federal Government recently passed the Coronavirus Aid, Relief and Economic Security Act or CARES Act that includes provisions pertaining to Healthcare Flexible Spending Accounts.   Under the CARES Act is a special provision relaxing the OTC restrictions for healthcare spending accounts.

Below are the highlights of the CARES Act pertaining to Healthcare FSA's shared to us by our FSA vendor, P&A Group.  These changes apply to employees who have an existing FSA through the State of Maryland.

• Over-the-counter (OTC) medications are now reimbursable under Flexible Spending Accounts without requiring a prescription or completing a Letter of Medical Necessity Form. This provision is retroactive to January 1, 2020.   
• Menstrual care products are now reimbursable as eligible expenses, including tampons and pads.  

Important Over-the-Counter Changes

Merchant Updates & Using your FSA Debit Card: 

The new OTC eligibility will require an update to merchants’ eligible products. Every merchant will need to update their system to allow Benefit Cards to work at the point-of-service for OTC expenses. You should anticipate that not every merchant will have their systems updated right away.  Industry experts have stated this process may take 4-6 weeks to complete and updated systems may differ on a merchant-by-merchant basis.  In summary, approximately 17,500 OTC items will be adopted by merchants. Feminine care items will most likely be added within 4-6 weeks and will be available for purchase with your Benefits Card at that time. 

Submitting Claims to P&A Group:

Claims may now be filed for OTC medications incurred in 2020. The quickest and most efficient way to file your reimbursement for these out-of-pocket expenses is to log into your account at md.padmin.com or through our mobile app. Click Upload Claim/Documentation. You can also fax or mail a claim form to P&A Group. Claim forms are also available when you log into your account.

Please note:  If you are submitting a claim for previously denied OTC expenses incurred between January 1, 2020 and March 27, 2020, please submit the expense as a NEW claim.   

If you have any questions, please contact P&A Group Monday – Friday, 8:00 am –10:00 pm ET at md.padmin.com or (844) 638-1900.