Here’s a nice surprise for your wallet: The CARES Act, which is known primarily as the primary piece of coronavirus relief legislation, also tucks in some changes that make it easier to pay for a wide range of healthcare items.
If you have a Flexible Spending Account (FSA), you can now use those funds to pay for over-the-counter medications without a prescription, as well as menstrual care products, including pads, tampons, cups and liners.
FSAs allow you to set aside pre-tax dollars to use toward health-related expenses. Their allowances were already pretty broad: FSA money could be applied toward appointment co-pays and everything from acupuncture treatments to over-the-counter pain relievers (provided your doctor prescribed them), eyeglasses and sunscreen. But menstrual products were excluded until the CARES Act came along.
If you have a high-deductible health plan with a Health Savings Account (HSA), you can also now use your HSA funds to buy menstrual products. And the CARES Act likewise expands your ability to save with your HSA even further: You can use your pre-tax funds to pay for over-the-counter drugs without needing a prescription for that medication.
HSAs are attractive because you can take them with you throughout your career, though your spending ability is more restricted than it is with an FSA. Qualified medical expenses for HSAs include medical, vision and dental care, prescription drugs and insurance expenses—and now non-prescription medication and menstrual care products. FSAs allow you to use your funds for a wider range of items, but you can’t take your account with you if you get a new job. FSAs and HSAs both have contribution limits.
Unless you’re starting a new job or purchasing your own insurance, you’re probably not going to be able to enroll in one of these plans until open enrollment comes around again in the fall. But if you already have an FSA or HSA, make sure to keep these newly eligible purchasing categories in mind.
