What types of healthcare expenses can be covered with an FSA?
The Healthcare FSA allows employees to be reimbursed for medical expenses not covered or reimbursed by other insurance and consumer directed plans like HSAs and HRAs. All expenses must be qualified medical, vision, pharmacy or dental benefit expenses as defined in Section 213(d) of the Internal Revenue Code. The new healthcare reform law includes a change in the definition of a “qualified medical expense” and therefore a change in how funds in an FSA can be used. This change is also true for HSAs and HRAs. Beginning in January 2011, expenses incurred for over-the-counter medications will no longer be eligible for payment or reimbursement from any of these healthcare accounts. However, the law still allows over-the-counter medicines for which the patient has a doctor’s prescription, as well as insulin, to be reimbursed from these accounts. However, “medically necessary” expenses can be run through the FSA. Generally if the participant’s doctor or healthcare provider writes a letter of m
Related Questions
- What types of medical expenses are covered under this protection plan? Can I claim for outpatient expenses incurred through sickness?
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- What types of expenses are not eligible for reimbursement with an FSA?
