Understanding Your Plan

Podcasts - Consumer Directed Health Plan podcasts are now available.

Introduction to CDH Plans - This tutorial explains the basics of insurance and will help you understand CDH plans, HSAs and HRAs. This is the best place to begin if you are not familiar with how your health plan works.

In this tutorial, you will learn about consumer directed health plans and health accounts, such as Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). The IRS recently released guidance regarding how health care reform legislation affects health accounts. The guidance states that beginning in 2011 the cost of an over-the-counter medicine or drug cannot be reimbursed from a health account (HSA, HRA or FSA) without a prescription. The change does not affect insulin, even if purchased without a prescription, or eligible medical equipment or supplies that are not medicines or drugs. These changes are not yet reflected in the tutorial.

These eligibility changes will be effective January 1, 2011.

  • Items that will become ineligible for health care account reimbursement without a prescription include acid controllers, cough, cold and flu medicines, pain relief medications and sleep aids.
  • Items that will remain eligible for health care account reimbursement without a prescription include crutches, eye and ear care supplies, first aid dressings and supplies, insulin and other medical supplies.

For more information, read Questions and Answers from the IRS.

View tutorial

IRS Changes for 2011  - This document highlights and explains changes to Health Care Spending accounts for 2011.