What are eligible Health Care FSA expenses?
A. Eligible expenses under a Health Care FSA are defined as those that are medically necessary, prescribed by a licensed practitioner and are not reimbursed under another program. A guideline for eligible expenses can be found in Treasury Publication 502 (Medical and Dental Expenses) on the Internet at www.sentinelbenefits.com/flexchoice under Publications and Forms. Please note that that over-the-counter drugs can be paid for with pre-tax dollars through Health Care Flexible Spending Accounts. The Treasury and IRS issued guidance clarifying that reimbursements for non-prescription drugs by an employer health plan may be excluded from income when reimbursed by the plan. The costs of dietary supplements that are merely beneficial to the employee’s health are not eligible for reimbursement by their plan.
A. Eligible expenses under a Health Care FSA are defined as those that are medically necessary, prescribed by a licensed practitioner and are not reimbursed under another program. Please refer to this guideline for eligible expenses. Please note that over-the-counter drugs can be paid for with pre-tax dollars through Health Care Flexible Spending Accounts. The Treasury and IRS issued guidance clarifying that reimbursements for non-prescription drugs by an employer health plan may be excluded from income when reimbursed by the plan. The costs of dietary supplements that are merely beneficial to the employee’s health are not eligible for reimbursement by their plan. Important Note: Keep in mind that expenses such as insurance premiums may be deductible on Schedule A but are not eligible for reimbursement through a Health Care Flexible Spending Account.
