Can anyone help me out with what is and what is not an eligible RX. I know not all prescriptions are permitted towards a Health care flexible spending account. If a prescription is merely cosmetic, please define those prescriptions for me. Or give me some direction. I was given Renova and Retin-A and possibly Kinerase. What about other Acne creams? Please advise. I've received quite a few requests for reimbursement for prescriptions such as Lamisil AT cream and Medi-cortisone 1% CR. I really need some advise here. Thanks!

myvettee,

There is no list of approved prescriptions.IRC section 213 governs what can be reimbursed through a flexible spending account for medical expenses. The IRS publishes a guide. It is called Publication 502. It states that "You can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a doctor for its use by an individual." Oral contraceptives are eligible because they are obtainable by prescription only. Many might argue that most women do not take them for a "medical reason", in fact the drug company is advertising that they clear up your complexion. Many drugs have multiple uses. If you stick to the IRS guidelins you wont have to play doctor as much.

You're better off matching reimbursement eligibility with information you can manage, like the source of the reimbursement claim & its general purposes, rather than attempting to impose an ad hoc formulary.

For example, you might ask questions like these about the claims:

Does the care it contributes to fit the definition provided by IRS Publication 502 (click the Medical Care subtopic)?

Was the Rx ordered by a physician or other credentialled medical practitioner authorised to write scripts, for treatment of an identified medical condition? Does the provider attest that the treatment is "primarily to alleviate or prevent a physical or mental defect or illness" (quote from Pub 502 definition of Medical Care)?

There's no one correct way to reach determinations of what claims qualify or not--that's the beauty, & for some the aggravation, of spending accounts. If you work in a way that's consistent, sensible, fair, and that doesn't require you to be a pharmacist, who can find fault with that?