Reimbursable Expenses under FSAs

April 13, 2006

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The following are examples of the types of expenses that can be reimbursed to employees who participate in a health care flexible spending account plan:

deductibles or coinsurance not covered by the health insurance plan
expenses for diagnosis, treatment, cure, or prevention of disease, if prescribed by a physician
prescription drug expenses
certain nonprescription drug expenses that are adequately substantiated
orthodontia if not for cosmetic purposes
medical expenses for hearing aids or vision care, unless as premiums for contact lens replacement insurance or expenses for contact lens solution
expenses paid to a chiropractor or Christian Science practitioner

The following are examples of the types of expenses that can be reimbursed in a dependent care FSA:

the care of dependent children under age 13 by a babysitter
day care center expenses
expenses in a before-school or after-school program

Nonreimbursable expenses. The following are expenses that are not eligible for reimbursement:

expenses to benefit general health (for example, vitamins or food)
insurance premiums for other health plans (except Medicare Plan B)
cosmetic surgery or liposuction to improve the patient's appearance
dancing lessons, swimming lessons, or dues paid to a health club for general health or to relieve physical or mental discomfort if not related to a particular medical condition
illegal drugs
life insurance and long-term care insurance premiums
personal use items, unless used to prevent or alleviate mental or physical defect or illness