In order for an expense to be reimbursed from a health flexible spending account plan, it must be for medical care. Medical care is defined in the Internal Revenue Code as including amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or for the purpose of affecting any structure or function of the body.
Items that are for general good health or are cosmetic in nature are not considered medical care and may not be reimbursed from a health FSA.
Some expenses have both a medical and non-medical purpose. In these situations, a letter of medical necessity is required from a physician to document that the expense is actually for medical care and is medically necessary. As a courtesy to FSA participants, BAS offers a template Letter of Medical Necessity Form that the participant can have his or her doctor complete to justify reimbursement of an expense that has both a medical and a non-medical purpose. On the form, the provider must indicate the specific diagnosis, the date, the specific treatment/service/supply needed, the length of treatment/service/supply and that the treatment/service/supply is medically necessary.
To obtain a template Letter of Medical Necessity, please contact info@BASusa.com or call 1-800-945-5513
