Ineligible Expenses – Avoid These Top 5 Mistakes

Ineligible Expenses – Avoid These Top 5 Mistakes

There are many expenses that can be reimbursed from a healthcare flexible spending account (FSA). While these plans will reimburse a wide variety of expenses, there are also some common expenses that are not eligible to be reimbursed from a healthcare FSA.  Here are the top 5 expenses to avoid submitting for reimbursement from a healthcare FSA.

  1. Warranties

It is very common for warranties to be included in the price of new glasses or other medical equipment. Since warranties are not a requirement and do not affect the function of the item, they are not eligible for pre-tax reimbursement from a healthcare FSA.

  1. Electric Toothbrushes and Replacement Parts

Dentists often recommend an electric toothbrush to replace a manual toothbrush.  Even though these might be recommended by the dentist they are not eligible for reimbursement from a healthcare FSA.  General health items such as toothbrushes are not eligible for reimbursement from a health FSA because they would be used even if there is no recommendation from a dentist.

  1. Expenses with a prior plan year date of service

Expenses are eligible for reimbursement based on the date of service, not the date of payment or the date the bill is received. Many plans have a specific amount of time participants can submit claims after the end of the plan year, however the claims will be reimbursed from the plan year based on the date of the expense.

  1. Vitamins, supplements and over-the-counter (OTC) medications

Generally speaking, vitamins, supplements and OTC medications are not eligible for reimbursement from a healthcare FSA. There is an exception if they are prescribed by a doctor to treat a specific medical condition.  If this is the case, a note from the doctor recommending the item and listing the specific medical condition it is treating is required in order to be reimbursed for the expense.

  1. Cosmetic procedures

Procedures and treatments received for cosmetic purposes are not eligible for reimbursement from a healthcare FSA. This includes procedures such as teeth whitening, plastic surgery, and cosmetic services provided at a dermatologist office.  If a cosmetic procedure is required due to a specific medical condition, a doctor’s note stating the specific medical condition as to why the treatment is needed is required to be submitted.

 

BusinessPlans, Inc. – myCafeteriaPlan does not intend to provide legal or tax advice and information contained in this article should not be interpreted as such. Regulations governing pretax plans are often open to interpretation and should be reviewed with your legal or tax advisor before making any decisions regarding your plan.

Posted 3/31/17

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