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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)





    Air conditioner (when necessary for relief from difficulty in breathing)

    Dental treatment

    Radium therapy

    Alcoholism treatment

    Dental X-rays

    Registered nurse



    Special school costs for the handicapped



    Spinal fluid test

    Arch supports

    Diagnostic fees


    Artificial limbs



    Autoette (when used for relief of sickness or disability)

    Drug addiction therapy


    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


    Transportation expenses (relative to health care)


    Fees paid to health institute prescribed by a doctor

    Ultraviolet ray treatment


    FICA and FUTA tax paid for medical care service



    Fluoridation unit


    Christian Science practitioner

    Guide dog

    Vitamins (if prescribed)

    Contact lenses

    Gum treatment


    Contraceptive devices (by prescription)




    Eligible Over-the-Counter Drugs


    Sinus medications and nasal sprays

    Wart removal medication

    Allergy medications

    Nicotine medications

    Antibiotic ointments

    Pain relievers

    Nasal sprays

    Sleep aids

    Cold medicine


    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)




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