What is an eligible expense under the traditional health care FSA?
Examples of eligible health care expenses include: • Deductibles, copays and coinsurance • Eye exams, eyeglasses and contact lenses • LASIK surgery for vision correction • Hearing exams and hearing aids • Lab fees • Chiropractic treatment • Dental and orthodontic care Prescription drugs and eligible over-the-counter health care items may also be included. But not all plans offer FSA reimbursements for over-the-counter health care items. Ask your employer if it’s part of your plan. Under IRS rules, health care FSAs are only allowed to reimburse “medical expenses,” as defined in section 213(d) of the Internal Revenue Code. Please note, however, that some medical expenses, such as medical insurance, long-term care premiums and long-term care expenses are not reimbursable under a health care FSA. It’s good to consult a tax advisor. IRS Publication 969 is also helpful. It offers guidance on FSA-reimbursable health care costs.
