Drugstore.com Inc. anticipates a lift in year-end sales via its online FSA Store as consumers spend down their tax-sheltered health flexible spending accounts. The web-only pharmacy, health and beauty products retailer’s online FSA Store carries more than 3,000 over-the-counter products that are eligible for reimbursement under health care flexible spending plans.
FSA plans enable consumers to purchase, or be reimbursed for, IRS-approved health care products not covered by health insurance. Consumers can designate up to $5,000 in pre-tax income to fund the accounts but must spend down that amount within one year or forfeit the remainder to the IRS.
Drugstore.com’s FSA Store provides FSA-only receipts that customers can print out at any time of the year to turn in for reimbursement. It also accepts FSA debit cards that some plans issue for FSA eligible purchases.
Drugstore.com, No. 35 in the Internet Retailer Top 500 Guide, says common over-the-counter products include stomach acid reducers, fertility monitoring kits, ibuprofen and bandages. Various types of equipment also are covered, including blood pressure and blood glucose monitors.
“Internet retail is uniquely suited to service FSA account holders because our online store can carry a much wider selection of eligible items compared to brick-and-mortar stores that are limited by shelf space,” says David Lonczak, vice president and chief marketing officer at Drugstore.com. “Our customers also appreciate the fact that we do the FSA accounting for them, making reimbursements or FSA debit cards a snap as they shop on our site throughout the year or right now when they need to use their FSA dollars or lose them.”
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