Qualified Medical Expenses

Below is a partial list of qualified medical expenses that can be reimbursed from a Health Savings Account (HSA), a Flexible Spending Account (FSA) and a Health Reimbursement Arrangement (HRA). Please be aware, however, that -- in the case of a Health Reimbursement Arrangement -- the HRA plan design may exclude some of these expenses.

The term “qualified medical expenses” are expenses paid by the account beneficiary, his or her spouse or dependents for medical care as defined in section 213(d) of the Internal Revenue Code (including nonprescription drugs as described in Rev. Rul. 2003-102, 2003-38 I.R.B. 559), but only to the extent that the expenses are not covered by insurance or otherwise. Qualified medical expenses must be incurred after the employee has enrolled in the respective account.

For more detailed information, click here. We also recommend that you refer to IRS Publication 502 titled, “Medical and Dental Expenses,” Catalog Number 15002Q. You can view it online at http://www.irs.gov/pub/irs-pdf/p502.pdf. For tax advice, please seek the services of a competent professional.

Eligible Medical Expenses
Abdominal supports	Convalescent home (for medical treatment only)	Psychologist
Acupuncture	Crutches	Psychotherapy
Air conditioner (when necessary for relief from difficulty in breathing)	Dental treatment	Radium therapy
Alcoholism treatment	Dental X-rays	Registered nurse
Ambulance	Dentures	Special school costs for the handicapped
Anesthetist	Dermatologist	Spinal fluid test
Arch supports	Diagnostic fees	Splints
Artificial limbs	Diathermy	Sterilization
Autoette (when used for relief of sickness or disability)	Drug addiction therapy	Surgeon
Birth control pills (by prescription)	Drugs (prescription)	Telephone or TV equipment to assist the hard-of-hearing
Blood tests	Elastic hosiery (prescription)	Therapy equipment
Blood transfusions	Eyeglasses	Transportation expenses (relative to health care)
Braces	Fees paid to health institute prescribed by a doctor	Ultraviolet ray treatment
Cardiographs	FICA and FUTA tax paid for medical care service	Vaccines
Chiropractor	Fluoridation unit	Vasectomy
Christian Science practitioner	Guide dog	Vitamins (if prescribed)
Contact lenses	Gum treatment	Wheelchair
Contraceptive devices (by prescription)	Psychoanalyst	X-rays
Eligible Over-the-Counter Drugs
Antacids	Sinus medications and nasal sprays	Wart removal medication
Allergy medications	Nicotine medications	Antibiotic ointments
Pain relievers	Nasal sprays	Sleep aids
Cold medicine	Pedialyte	Motion sickness pills
Anti-diarrhea medicine	First aid creams	Suppositories and creams for hemorrhoids
Cough drops and throat lozenges	Calamine lotion

Ineligible Medical Expenses
Advance payment for services to be rendered next year	Health programs offered by resort hotels, health clubs and gyms	Special foods and beverages
Athletic club membership	Illegal operations and treatments	Specially designed car for the handicapped other than an Autoette or special equipment
Automobile insurance premium allocable to medical coverage	Illegally procured drugs	Stop-smoking programs
Boarding school fees	Maternity clothes
Bottled water	Non-prescription medication	Swimming pool
Commuting expenses of a disabled person	Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits	Travel for general health improvement
Cosmetic surgery and procedures	Scientology counseling	Tuition and travel expenses to send a problem child to a particular school
Cosmetics, hygiene products and similar items	Social activities	Weight loss programs
Ineligible Over-the-Counter Drugs
Toiletries (including toothpaste)	Cosmetics (including face cream and moisturizer)	Fiber supplements
Acne treatments	Suntan lotion	Dietary supplements
Lip balm (including ChapStick or Carmex)	Medicated shampoos and soaps	Weight-loss drugs for general well-being
Funeral, cremation or burial expenses	Vitamins (daily)	Herbs