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Employee Benefits

Flexible Benefits - Over-the-Counter Drugs and Medical FRAs

Effective Jan. 1, 2011, health care reform legislation prohibits the purchase of Over-the-Counter (OTC) drugs and medicines with funds from your Medical FRA unless you have a prescription from your doctor.  The only exception is insulin.  Other OTC items, such as bandages, first aid kits and contact lens solution, may still be reimbursed from your Medical FRA.  A list of which items require or do not require a prescription may be found on the Fringe Benefits Management Company (FBMC) Web site.  See the address below.

When you enroll in a Medical FRA during annual Open Enrollment or based on a consistent qualifying mid-year event, please be careful to calculate how much money you would like to have deducted before taxes from each paycheck.

It is important to remember that you can still use your Medical FRA funds for other eligible medical expenses and prescription purchases at pharmacies that are part of the IIAS Store List on

If you have any questions regarding these new rules, please contact Fringe Benefits Management Company (FBMC) Customer Care at 1-800-342-8017 (Monday - Friday, 7 a.m. - 10 p.m. EST).