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Deadline Approaching for Cafeteria and HRA Plan Amendments

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Lauren B. Dunn
Foster Swift Employment, Labor & Benefits E-News
June 20, 2011

Certain cafeteria and health care reimbursement ("HRA") plan amendments relating to the reimbursement of over-the-counter ("OTC") drugs must be adopted by June 30, 2011.  Effective January 1, 2011, the Patient Protection and Affordable Care Act ("PPACA") prohibits the tax-free reimbursement of OTC drugs under a health care flexible spending account, health savings account, health reimbursement arrangement or an Archer medical savings account without a prescription.  Employers must amend all such plans that offer reimbursement for OTC drugs by June 30, 2011 to conform to the new requirements.

The June 30, 2011 deadline is quickly approaching.  Please contact your Foster Swift employee benefits professional if you have questions regarding whether your cafeteria or HRA plan has been amended to comply with PPACA, or if you have any questions regarding the foregoing.