The cost of COVID-19 home testing is eligible for reimbursement under a health care flexible spending account plan. The IRS has confirmed that diagnosing COVID-19 using a home testing kit is medical in nature. Since using home testing to diagnose COVID is a medical expense, the cost of the test may be reimbursed under a health flexible spending account plan.
The IRS has also confirmed that the cost of masks, hand sanitizer and sanitizing wipes with a primary purpose of preventing the spread of COVID-19 is also a medical expense eligible for reimbursement from a health care FSA. The IRS announcement may be accessed by clicking here.
For information about setting up a Flexible Spending Account with BAS, contact your account manager or solutions@basusa.com.