Flexible Spending Account changes coming in 2011
Active pastors who participate in the IGRC FLEX plan (also called Section 125 Plan, Cafeteria Plan, Flexible Medical Spending Plan, FSA Plan) will notice a change in the rules regarding the purchase of over-the-counter (OTC) medications with the FLEX plan beginning in 2011.
The recent Health Care Reform Act (PPACA) vastly reduces your ability to claim reimbursements for OTC medications. Pastors should consider these changes in making plans for their salary-reduction amounts in 2011. Beginning in Jan. 1, 2011, over-the-counter medications can only be reimbursed by the FLEX plan in 2011 if they are purchased with a doctor's prescription. The new rules do not apply to the purchase of insulin or diabetic supplies.
Will my FLEX card still work for purchases of OTC medications at the register?
No. The regulations require Flex Cards to be deactivated for these purchases.