Must-Knows About HSAs, The CARES ACT, and COVID-19
In March 2020, Congress and the President passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act to help Americans better cope with the pandemic’s effects. The CARES Act includes essential updates to health savings accounts (HSAs). Now there are many more qualifying expenses than ever.
For the first time since 2011, Over-The-Counter (OTC) medications are purchasable without a doctor’s prescription.
Over-the-Counter (OTC) Medications
For the first time since 2011, Over-The-Counter (OTC) medications are purchasable without a doctor’s prescription. Before the CARES Act, any product that contained medicated ingredients required a doctor’s visit, which could prove costly. With this restriction gone, a whole range of OTC medications is available to HSA holders. These medications include pain relievers, such as Tylenol, cold and flu medicines, allergy, and heartburn relief products.
Feminine Hygiene Products
Also, for the first time, menstrual care products are considered a qualifying expense for your HSA. That list includes tampons, pads, liners, sponges, and similar products.
Telehealth Medicine and High Deductible Health Plans (HDHP)
Under the CARES Act, high deductible health plans (HDHP) with an HSA may cover telehealth services or remote care services pre-deductible until December 31, 2021. Lastly, it is essential to note that changes to all qualified medical expenses are retroactively effective after January 1, 2020.