FSA Eligible Expenses

FSA Qualified Expenses

IRS regulations govern FSA eligibility and FSA qualified expenses.

As an FSA Administrator, BASIC helps ensure that our clients stay within these regulations.

* Please note: This list is a broad overview of eligible expenses; not all services provided by a provider or practitioner are eligible under the IRS regulations.

IRS Publication 502 for Medical Expenses

MEDICAL, DENTAL & VISION

  • Co-pays
  • Co-insurance
  • Deductibles

MEDICAL*

  • Acupuncture
  • Chiropractor
  • Podiatrist
  • Doctor fees
  • Office visit
  • Prescriptions
  • Hospital bills
  • Laboratory fees
  • Medic alert bracelet
  • Dermatologist
  • Immunizations
  • Obstetricalexpenses
  • Routine physicals
  • X-rays
  • Well baby
  • checkups

DIABETIC SUPPLIES*

  • Insulin
  • Glucometer
  • Syringes/Needles
  • Test Strips

HEARING*

  • Hearing exam
  • Hearing aids
  • Special batteries

THERAPY*

  • Physical therapy
  • Learning disability
  • Psychologist fees for
  • medical care
  • Psychiatric care

VISION*

  • Glasses
  • Eye exam
  • Contact lenses
  • Contact solution
  • Prescription
  • sunglasses
  • LASIK surgery
  • Visine and eye drops
  • Reading glasses
  • Eyeglass repair kits
  • Orthokeratology
  • Seeing-eye dog (buying, training, and maintaining)

DENTAL*

  • Orthodontic
  • Dentures/bridge/crowns
  • Fluoride treatments & seals
  • Cleanings and fillings
  • Root canals
  • Extractions
  • Dental x-rays
  • Occlusal guardsReconstruction/implants

BIRTH CONTROL DEVICES*

  • Condoms
  • Prescriptions
  • Sterilization

PHYSICAL IMPAIRMENTS*

  • Wheelchair
  • Crutches
  • Walker
  • Custom made orthopedic shoes and inserts

SPECIAL NEEDS*

  • Transportation to and from doctor/hospital (call for current mileage rates and guidelines)
  • over-the-counter items*
  • Sunscreen
  • Band-aids
  • Carpal tunnel wrist supports
  • Cold/hot packs for injuries
  • Home pregnancy tests
  • Incontinence supplies
  • Liquid adhesive for small cuts
  • Nasal strips

EXPENSES THAT REQUIRE A LETTER OF MEDICAL NECESSITY

The IRS allows reimbursement of the following, with a copy of the physician’s statement of medical necessity, that includes the specific product/service and diagnosis. Treatment cannot be for general health or well being. A copy needs to be submitted with every reimbursement request and a new letter needs to be reinstated every 12 months.

  • Health club fees/gym memberships
  • Nutritional supplements/vitamins
  • Massage therapy
  • Acne medication
  • Weight loss programs (i.e. Weight Watchers and Jenny Craig) – Program fees are eligible but food portions are not.
  • Stop smoking programs/items over-the-counter Medicine
  • Acid controllers
  • Antibiotic products
  • Anti-diarrheas/gas
  • Anti-itch/insect bite
  • Antiparasitic treatments
  • Baby rash creams
  • Cold sore remedies
  • Cough, cold & flu
  • Digestive aids
  • Feminine anti-fungal/anti-itch
  • Hemorrhoidal preps
  • Laxatives
  • Pain relief
  • Sleep aids & sedatives
  • Stomach remedies

EXAMPLES OF INELIGIBLE EXPENSES THE IRS DOES NOT ALLOW REIMBURSEMENT FOR THE FOLLOWING

  • Cosmetic surgery
  • Insurance premiums
  • Marriage/debt counseling
  • Eyeglass sun clips
  • Eyeglass or contact warranty
  • Prepayment of services
  • Special (dietary) foods
  • Personal care items
  • Sanitary products
  • Diapers
  • Deodorant
  • Chapstick
  • Face cream or moisturizers
  • Eye serums or wrinkle creams
  • Teeth bleaching/whitening
  • Toothbrushes/toothpaste
  • Floss/flossing devices
  • Mouthwash
  • Protein shakes/meal replacement

Learn more about BASIC FSA Administration.

Current clients and participants should contact BASIC with any questions regarding FSA eligible expenses.

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