Q.- Why can’t our employees be reimbursed from their health FSA for the cost of insurance premiums? Premiums are listed in IRS Publication 502 as a medical expense.
A.- While Publication 502 can be helpful for determining the types of expenses that are considered "medical" expenses, it does not govern reimbursement of expenses from FSAs. Publication 502 provides guidance on the itemized deduction for medical and dental expenses claimed on Schedule A of Form 1040. The flexible spending account plan rules prohibit the reimbursement of insurance premiums.