The CARES Act affects your Medical FSA or HSA funds

Mon, 04/20/2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed on March 27, 2020. This federal law expands how you can use your Medical Flexible Spending Arrangement (FSA) and Health Savings Account (HSA) funds.

Here’s an overview of what changed:

  • The CARES Act removes the requirement that you must have a prescription for over-the-counter (OTC) drugs in order to use Medical FSA or HSA funds for these expenses. OTC drugs include cold medicines, anti-inflammatories, and other products. This change is retroactive to January 1, 2020 and has no expiration date. Keep in mind that the IRS stockpiling rule is still in effect. If you buy more than three identical products in one transaction, you will not be reimbursed.
  • You can now buy menstrual care products using your Medical FSA funds. This includes pads, tampons, cups, and other similar products. This change is retroactive to January 1, 2020 and has no expiration date.
  • If you’re enrolled in a high-deductible health plan (HDHP), including consumer-directed health plans (CDHP), the deductible and coinsurance are waived for COVID-19 testing and treatment for telehealth services. Contact your plan for more information about your benefits. This provision began on March 27, 2020 and expires December 31, 2021.

To learn how the Health Care Authority is responding to the COVID-19 state of emergency, visit Information about novel coronavirus (COVID-19).

More Medical FSA resources

If you purchased newly eligible products in 2020, you can submit a Medical FSA claim to Navia Benefit Solutions for reimbursement. To submit a claim, see an updated list of eligible expenses or learn about other changes to your Medical FSA or DCAP, visit Navia’s website for PEBB members or SEBB members.

More HSA resources

To submit an HSA claim, visit HealthEquity’s website for PEBB members and SEBB members. To learn more about changes to your HSA due to the CARES Act, visit their CARES Act webpage.