FSA and HSA Debit Cards

The Affordable Health Care Act essentially bars purchase or reimbursement of over-the-counter (OTC) drugs from FSAs and HSAs made after Dec. 31, 2010, unless there was a prescription for the medicine and a receipt for the purchase.  Now the IRS has issued updated guidance modifying the old rules and posted Q&A on its web site.  (www.irs.gov/newsroom, and search for care tax provisions)