A health Flexible Spending Account (FSA) is an employer-sponsored benefit that allows employees to contribute pre-tax dollars to pay for qualified medical expenses. These expenses can be reimbursed tax-free from the FSA account. The expenses that can be reimbursed from a health FSA include the following:
- Medical and Dental Expenses: The cost of medical and dental care is one of the most common expenses that can be reimbursed from a health FSA. This includes the cost of doctor visits, prescriptions, and medical procedures. Dental expenses such as braces, dentures, and teeth cleaning are also eligible.
- Vision Expenses: Vision expenses such as eye exams, prescription glasses, and contact lenses can be reimbursed from a health FSA. Other eligible expenses include prescription sunglasses and contact lens solution.
- Over-the-Counter (OTC) Medications: In the past, OTC medications were not eligible for reimbursement from a health FSA. However, legislation passed over the past few years has changed this. Now, eligible OTC medications include pain relievers, allergy medication, and digestive aids.
- Medical Equipment: Medical equipment such as crutches, braces, and wheelchairs can be reimbursed from a health FSA. Additionally, equipment for monitoring blood pressure, blood sugar, and other medical conditions is also eligible.
- First Aid Supplies: First aid supplies such as bandages, gauze, and antiseptic ointments can be reimbursed from a health FSA. This also includes items such as sunscreen and insect repellent.
- Mental Health Services: Mental health services such as counseling and therapy can be reimbursed from a health FSA. Additionally, prescription medications for mental health conditions are also eligible.
- Alternative Medicine: Alternative medicine treatments such as acupuncture and chiropractic care can be reimbursed from a health FSA. However, it is important to note that these expenses must be for the treatment of a medical condition and must be prescribed by a doctor.
- Pregnancy and Childbirth Expenses: Pregnancy and childbirth expenses such as prenatal care, childbirth classes, and breastfeeding supplies can be reimbursed from a health FSA.
- Health Insurance Premiums: Health insurance premiums are not eligible for reimbursement from a health FSA.
A health FSA can be a valuable benefit for employees who want to save money on eligible medical expenses. By knowing what expenses are eligible for reimbursement, employees can make the most of their FSA account and keep more money in their pockets.
