Retail News Breaks Archives
Drugstore.com gives FSA heads-up
November 10th, 2010
BELLEVUE, Wash. – With new regulations on the horizon, drugstore.com is reminding its customers with flexible spending accounts (FSAs) to use their remaining funds by the end of the year.
The online retailer said this week that its FSA-only store can help account holders to use their funds wisely in one easy-to-shop location. FSA-eligible items include over 3,000 over-the-counter products (such as pain relievers, blood pressure monitors, diabetes meters, band aids, defibrillators, smoking cessation aids, vitamins, acne remedies, skin care, baby care and digestives) as well as contact lenses via the VisionDirect.com sister site and co-pays for prescription drugs ordered through the drugstore.com pharmacy.
Drugstore.com said it accepts all FSA debit cards. For customers without the special debit card who need receipts for reimbursement, the retailer does all the accounting work. Customers can simply log into their online account and print a receipt for all FSA purchases.
An FSA account provides money-saving benefits by setting aside pretax wages to pay for qualified health care expenses, but account holders must use those funds by the end of the year or they will lose them. More than 35 million people have FSAs, drugstore.com reported.
"Drugstore.com had the first FSA-only online store, and we're proud to be a reliable source of information to help customers save on health care costs now and in the future," David Lonczak, vice president at drugstore.com, said in a statement. "We recommend that customers make strategic purchases this year, because health care reform is changing FSA rules in the coming year."
The company noted that starting Jan. 1, 2011, new regulations will reduce the number of OTC products automatically eligible for FSA. Some of those products will continue to be covered, but only with a doctor's prescription. Item eligibility and information will be updated online at www.drugstore.com/FSA to reflect the changes, according to the retailer.