The CARES Act, signed into law Friday, March 27, 2020 restores over-the-counter medications as eligible expenses for Health Savings Accounts (HSA), Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA), without a prescription, retroactive to January 1, 2020.

The law also incorporated several, healthcare related tax benefits:

  • Menstrual care products added as eligible expenses for these qualified accounts
  • Allows tele-health to be covered at no cost on HSA-compatible HDHP plans, through December 31, 2021
  • The IRS has also ruled the elimination of cost-sharing for COVID-19 related treatment does not disqualify HDHP medical plans from HSA-qualified status

More details here from our partners at Discovery Benefits. And a great summary analysis of the CARES Act from SHRM, here.


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