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Employer Health Plans May Reimburse Employees for Purchases of Over-the-Counter Drugs

By Timothy D. S. Goodman of Dorsey & Whitney LLP

In a significant development, the Internal Revenue Service has issued new guidance in a Revenue Ruling permitting health flexible spending accounts to reimburse participants for the cost of over-the-counter drugs, such as aspirin, antacids, and allergy medicines. Because many health plans are about to send out annual enrollment materials, employers will want to analyze this new guidance now.



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