PPE and Health FSA/HRA

Posted by BAS - 01 April, 2021


The IRS announced that amounts paid for personal protective equipment such as masks, hand sanitizer and sanitizing wipes for the primary purpose of preventing the spread of COVID-19 are considered amounts paid for medical care under section 213 of the Internal Revenue Code. These items are now allowed to be reimbursed from a health FSA.

The IRS notice recognizes all forms of PPE as expenses medical care and does not limit the PPE to just disposable or non-disposable items. Reimbursements are permitted for expenses incurred on or after 1/1/2020 and they must be properly documented for reimbursement.

If plan terms do not allow the reimbursement of PPE but the plan wants such expenses to be eligible, the plan will have to be amended by the last day of the first calendar year after the amendment is effective. If the plan would already allow the reimbursement as a medical expense, no amendment would be necessary.

A copy of the notice may be accessed by clicking here.

Topics: HR & Benefits Compliance, Covid, coronavirus resources, Flexible Spending Accounts, HR & Benefit Plans

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