Tax
Saver Benefit (TSB) Plan
Over-the-Counter Medicine Reimbursement
The IRS recently released a new ruling that allows the TSB plan
to reimburse amounts paid by participants for non-prescription drugs
and medicines. In general, non-prescription drugs and medicines
are now eligible for reimbursement if they are intended to treat
or alleviate a sickness or injury, and are not eligible if they
are needed for the person’s general health and well-being.
In order to be reimbursed, the claim must include a receipt with
the name of the product, the date of purchase, and the amount paid.
Drugs
and medicines eligible for reimbursement include:
-
Allergy medicines, including Claritin
-
Heartburn products ranging from Rolaids to Prilosec
-
Cough and cold medications
-
Eyedrops
-
In-home testing kits
-
Nasal sprays, including saline sprays
-
Ointments (such as Cortaid, Preparation H, antibiotic creams,
diaper rash creams, Ben Gay, antifungals, and antiyeast preparations)
-
Pain relievers (such as aspirin, Tylenol, and ibuprofen)
-
Sinus medications
-
Smoking cessation products (such as nicotine patches and gum)
-
Vitamins, when accompanied by a prescription for a specific medical
condition
Purchases
NOT eligible for reimbursement include such items as:
-
Condoms
- Cosmetics
- Diapers
- Diet
food
- Feminine
products
- Nutritional
supplements
- Oral
hygiene products
- Shampoo
Because items claimed under the TSB plan cannot be attributed directly
to the employee or an eligible tax dependent, the employee remains
accountable for justifying the expenses to the IRS. Nyhart will
make reasonable attempts to monitor claims and may deny claims that
are excessive, that is, claims for amounts of medicines that could
not reasonably be used solely for the employee or eligible dependents.
This list is just a summary. Questions about a specific item should
be referred to Nyhart at flexplans@nyhart.biz, 317-803-7750 or 800-284-8412.
Please see the UHRS Web site at www.indiana.edu/~uhrs/ for a more
detailed list.
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