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Small Business Employee Benefits and HR Blog

How Health Care Insurance Reform Affects FSAs (Flexible Spending Accounts)

March 30, 2010
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The health care reform bill creates the following restrictions on the use of flexible spending accounts (FSAs):

  1. Beginning in 2011, non-prescribed over-the-counter drugs will no longer be qualified medical expenses
  2. Beginning in 2013, employee contributions to FSAs through salary reduction will be limited to $2,500 per year and adjusted in subsequent years based on inflation

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