The Affordable Care Act, enacted in March 2010, established a new uniform standard that, effective Jan. 1, 2011, applies to FSAs and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account funds unless specifically prescribed by a doctor. Prior to Jan. 1, 2011, a prescription was not required.
Beginning in 2013, FSA contributions will be limited to $2,500 each year with annual inflation increases. Today, there are no standard limits, though most employers cap the maximum somewhere below $5,000. Most people put away less than this, but if you are one of those who takes full advantage of your employer’s current maximum, you may see a reduction in the amount you are able to save in the future.