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Small Business Employee Benefits and HR Blog

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

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