Flexible Spending Account - Prescriptions

GLC

We process the FSAs in-hourse. When reimburing for prescriptions under the FSA, does the employee need to provide the name of the prescription? We've had some employees marking the name out because they don't want us to see the name of the prescription. I looked at the IRS.gov website but could not find anything on this. If anyone has a link, please provide.

NeedCoffee

I believe that as long as your documentation shows that it is an FSA reimbursable expense, you shouldn't worry about the name...after all, you get into all sorts of medical messes when you start having knowledge of what prescriptions your employees are on.

Unless you cannot verify from the receipt/pharmacy documentation that the charge was FSA approved, I would not worry about it. Also remember that in most FSAs, OTC drugs are also reimbursable expenses...I'm not sure if this is a nation-wide practice, but here in Texas, your receipts have a notation for how much of your purchase falls under the rules for OTC FSA purchases...that helps take away some of the guessing!

stilldazed

For privacy issues, the employee can withhold the name of the Rx since Rx names can disclose the diagnosis. It's enough for you to have an Rx #, which confirms that the med (whatever it is) was prescribed by a physician licensed to prescribe for the treatment of a medical condition.

FunHRBanker

Some prescriptions are not FSA eligible, such as those for hair loss. In general, I think if insurance covers it, it's probably ok.

Privacy is one of the main reasons we went to a TPA to administer claims.