Cafeteria Plans and Health Care Accounts

The Affordable Care Act (ACA) includes provisions that specifically affect cafeteria plans as well as various health care accounts, such as flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs) and Archer medical savings accounts (MSAs).

ACA also creates a new type of plan called a simple cafeteria plan that provides small employers with a safe harbor from the nondiscrimination rules of traditional cafeteria plans.


Government Resources
Health Care Accounts and Over-the-Counter Drugs

Analysis
Over-the-Counter Drugs
Simple Cafeteria Plans
Overview of Reform Provisions Affecting Cafeteria Plans and Health Care Accounts

Government Resources

The U.S. Center for Consumer Information & Insurance Oversight (CCIIO) has issued guidance with respect to the application of the existing annual limit waiver criteria to Health Reimbursement Arrangements (HRAs). This supplemental guidance exempts HRAs that are subject to the restricted annual limits as a class from having to apply individually for an annual limit waiver. 8/19/11  

Health Care Accounts and Over-the-Counter Drugs

Congressional Hearing on the Impact of Limitations on the Use of Tax-Advantaged Accounts for the Purchase of Over-the-Counter Medication, House Committee on Ways and Means, 4/25/12 (New)

The IRS has issued Notice 2011-5 which provides guidance on use of health FSA and HRA debit cards to purchase over-the-counter medicines or drugs that are prescribed. 12/23/10 

The IRS has released guidance revising the definition of medical expenses, specifically for over-the-counter drugs, for employer-provided accident and health plans, including health flexible spending arrangements (health FSAs), health reimbursement arrangements (HRAs), Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (Archer MSAs).

Analysis

Over-the-Counter Drugs

Simple Cafeteria Plans  

Overview of Reform Provisions Affecting Cafeteria Plans and Health Care Accounts