For example, if a doctor recommends taking a daily aspirin, it is not eligible as a medical expense because a physician’s prescription is not required to purchase the aspirin. A prescribed drug is one that requires a prescription from a doctor in order to purchase the drug. Nonprescription drugs-Medicine that isn’t prescribed is not eligible.Consolidated Omnibus Budget Reconciliation Act (COBRA) premiums are also not eligible. Insurance premiums-Premiums for health, dental, vision and life insurance are not eligible.However, if the Food and Drug Administration (FDA) determines a prescribed drug can be legally imported, the drug would generally be considered eligible. Imported medicines and drugs-Imported medicine bought in or ordered and shipped from another country are not eligible.Similarly, cannabidiol (CBD) oil products are not eligible. Controlled substances-Drugs such as marijuana are not eligible because they are illegal under federal laws, even if legal under some state laws.However, when medical services are actually received, the copay and/or charge for service are eligible expenses. Concierge medical fees-Some primary care physicians charge an annual fee or retainer paid in advance of any medical services.Below are a few notable expenses that aren’t eligible for reimbursement: This listing details both eligible and ineligible expenses. Qualified (or what the Internal Revenue Service (IRS) calls includible) expenses eligible for reimbursement are those approved by the IRS and described in IRS Publication 502. Covered expenses are those that are incurred during the plan year, not from a prior or future year. Qualified and Nonqualified FSA Expensesįor plan participants, understanding what qualifies as an eligible expense is critical. If you offer a plan, communicating the value of the FSA along with explaining the details of reimbursable expenses, the timing of electing coverage and the use-it-or-lose-it rules are vital to ensuring that plan participants understand how to use an FSA to their advantage. As medical costs continue to rise, we all want to save on health care, dental or vision expenses wherever we can, and FSAs offer a way to reduce out-of-pocket costs and save on taxes. According to the International Foundation of Employee Benefit Plans Employee Benefits Survey, more than 61 percent of plan sponsors offer a flexible spending account (FSA) to their participants.
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