Which expenses can be reimbursed by an FSA?

Your  Health Care Reimbursement Flexible Spending Account lets you pay for medical care expenses not covered by your insurance plan with pre-tax dollars. The expenses must be primarily to alleviate a physical or mental defect or illness, and be adequately substantiated by a medical practitioner. The products and services listed below are examples of medical expenses eligible for payment under your  FSA, to the extent that such services are not covered by your medical and dental insurance plan.

Unfortunately, we cannot provide a definitive list of “qualified medical expenses.” A determination of whether an expense is for “medical care” is based on all the relevant facts and circumstances. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.

On March 27, 2020, the president signed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) into law. The CARES Act repealed the Medicine Cabinet Tax provision of the Affordable Care Act, expanding the list of qualifying expenses that can be purchased with an FSA.  Under the CARES Act, the definition of a qualifying medical expense now includes certain over-the-counter medications and products, including cold and flu medicine, allergy medication and menstrual products.

  • Abortion
  • Acupuncture
  • Alcoholism treatment
  • Ambulance
  • Annual physical examination
  • Artificial limb
  • Artificial teeth
  • Bandages
  • Birth control pills
  • Body scan
  • Braille books and magazines
  • Breast pumps and supplies
  • Breast reconstruction surgery
  • Capital expenses (improvements or special equipment installed to a home, if meant to accommodate a disabled condition)
  • Car modifications or special equipment installed for a person with a disability
  • Chiropractor
  • Christian Science practitioner 
  • Contact lenses
  • Crutches
  • Dental treatment (not including teeth whitening)
  • Diagnostic devices
  • Disabled dependent care expenses
  • Drug addiction treatment
  • Eye exam
  • Eye glasses
  • Eye surgery
  • Fertility enhancement (in vitro fertilization or surgery)
  • Guide dog or other service animal
  • Health institute fees (if treatment is prescribed by a physician)
  • Intellectually or developmentally disabled care, treatment or special home
  • Laboratory fees
  • Lactation expenses
  • Lead-based paint removal (if a child in the home has lead poisoning)
  • Learning disability care or treatment
  • Legal fees associated with medical treatment
  • Lifetime care, advance payments or “founder’s fee”
  • Lodging at a hospital or similar institution 
  • Medical conference expenses, if the conference concerns a chronic illness of yourself, your spouse or your dependent
  • Medical information plan
  • Medications, if prescribed
  • Nursing services
  • Operations
  • Optometrist
  • Organ donors
  • Osteopath 
  • Oxygen
  • Physical examination
  • Pregnancy test kit
  • Prosthesis
  • Psychiatric care
  • Psychoanalysis
  • Psychologist 
  • Special education
  • Sterilization
  • Stop-smoking programs
  • Surgery
  • Special telephone for hearing-impaired individual
  • Television for hearing-impaired individuals
  • Therapy received as medical treatment
  • Transplants 
  • Transportation for medical care
  • Tuition for special education
  • Vasectomy
  • Vision correction surgery
  • Weight-loss program if it is a treatment for a specific disease
  • Wheelchair
  • Wig 
  • X-ray

Source: www.irs.gov/publications/p502/ar02.html#en_US_publink1000178947

Plans that do not allow reimbursement of all eligible medical expenses as defined by the IRS and Department of Treasury must customize this brochure prior to use.

Download PDF version HERE.

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