Q: S.L. in Boone County: I have an HSA. I heard I can use this for over-the-counter meds now. Is this correct?
A: Yes, you are correct. The recently passed CARES Act makes a few changes to rules for tax-advantaged Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). One of the biggest is that, now, you can use money in either of these accounts for over-the-counter (OTC) medicines. Previously, you could only use HSA or FSA money on prescription medicine or OTC medicine with a doctor’s prescription. Additionally, the CARES Act also now allows HSA-qualified plans to cover ‘telehealth’ services even before you’ve reached your deductible.