Q.- I have cancer and I am using medically-prescribed marijuana as part of my treatment. May I be reimbursed from my health FSA for the cost of the marijuana?
A.- No. A Health FSA may reimburse the cost of medicine and drugs. IRS regulations define medicine and drugs to include only items that are legally procured. Generally, the IRS will look to the laws of the state in which the medicine or drug was obtained to determine if it was legally procured. However, if a drug violates federal law, it will not be considered to have been legally procured, even if it was legally purchased in the state. Since marijuana is a Schedule I controlled substance under federal law and possession of marijuana is illegal, it cannot be reimbursed from a Health FSA, even if the state allows marijuana for medical use.
