Flex Spending Account Allowable Expenses Guide

A Flex Spending Account (FSA) can be a great way to save money on out-of-pocket medical expenses, but it can be confusing to know what's eligible for reimbursement. One of the most important things to understand is what types of expenses are considered allowable.

Common medical expenses that are often covered by FSAs include copays, deductibles, and prescription medication. These expenses can add up quickly, and an FSA can help you save money on them.

Some expenses are not eligible for reimbursement, such as health insurance premiums, cosmetic procedures, and over-the-counter medications. It's essential to check your FSA plan's specific rules to ensure you're using it correctly.

By understanding what's eligible for reimbursement, you can make the most of your FSA and save money on out-of-pocket medical expenses.

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Eligible Expenses can be a bit tricky to navigate, but don't worry, I've got you covered. Eligible expenses are those that are incurred by you, your spouse, or your qualifying child or qualifying relative during the plan year for medical care, excluding all insurance premiums and long-term care expenses.

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Qualifying health care expenses include amounts incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body. These expenses must be primarily to alleviate or prevent a physical or mental defect or illness.

You can use your FSA to pay for everyday products like over-the-counter (OTC) medicines and feminine care products without a prescription or physician's note.

Some examples of eligible expenses include:

You can also use your FSA to pay for healthcare-qualified expenses at clinics, optometrists, dentists, pharmacies, and other merchants with a healthcare inventory information approval system (IIAS) in place.

Remember, only the portion of the expenses you owe after insurance payments can be claimed.

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Over-the-counter (OTC) medicines and feminine care products are eligible for tax-advantaged benefit plans without a prescription or physician's note.

You can use your FSA, DCFSA, HSA, or HRA account to purchase hundreds of everyday expenses using pretax dollars to reduce your taxable income.

Some examples of everyday expenses that qualify include healthcare products and services, such as those found at clinics, optometrists, dentists, and pharmacies with a healthcare inventory information approval system (IIAS) in place.

You can also use your TASC Card to pay for eligible expenses at the point of purchase, making shopping for healthcare products easier.

Eligible expenses can be found at Beneshop, which provides a wide variety of products, brands, and retailers covered under your FSA plan.

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You can claim eligible medical expenses for your child through the end of the calendar year in which they reach 26. This rule applies to sons, daughters, adopted children, stepchildren, or eligible foster children.

Eligible expenses must be incurred by the employee, their spouse, or their qualifying child or relative during the plan year for medical care. These expenses must be primarily to alleviate or prevent a physical or mental defect or illness.

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Eligible expenses include amounts incurred for diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body.

To determine if an expense is eligible, refer to the FSA and HSA Eligibility List. The list categorizes expenses as eligible for reimbursement, eligible with a prescription, eligible with a Letter of Medical Necessity, or not eligible.

If you're trying to figure out what expenses are eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA), it's essential to check the eligibility list.

Eligible expenses for FSAs and HSAs are outlined in the IRS rules, which state that expenses must be incurred for medical care, as defined in Section 213(d) of the Internal Revenue Code.

Expenses must be primarily to alleviate or prevent a physical or mental defect or illness, and can include amounts incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease.

The portion of expenses you owe after insurance payments can be claimed, but insurance premiums and long-term care expenses are excluded.

Eligible expenses for FSAs and HSAs include amounts incurred for over-the-counter (OTC) drugs, medicines, biologicals, equipment, supplies, and diagnostic devices.

To determine if a specific expense is eligible, check the FSA and HSA Eligibility List, which is available online.

Here's a quick reference guide to help you understand the eligibility criteria:

You can claim eligible medical expenses for your child through the end of the calendar year in which they reach 26. Your child may be a son, daughter, adopted child, stepchild, or eligible foster child.

To qualify for reimbursement, your child doesn't have to be a tax dependent. Children no longer have to be tax dependents in order for you to be reimbursed for their medical expenses.

FSAs, or Flexible Spending Accounts, allow you to set aside pretax money from your paycheck to pay for out-of-pocket health care expenses.

By setting aside a portion of your pay with an FSA, you reduce your annual taxable income. This means you won't pay FICA (7.65%) or federal income tax (up to 37%) on those elected dollars.

Your election will be deducted from your paycheck pre-tax throughout the plan year.

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There are two types of FSAs offered by the PEBB Program: a standard FSA and a Limited Purpose FSA.

The standard FSA covers a wide range of health care expenses, including deductibles, copays, coinsurance, medications, and more. You can use it to pay for expenses for you, your spouse, or your qualified tax dependents, even if they're not enrolled in your PEBB medical or dental plan.

The Limited Purpose FSA, on the other hand, only covers dental and vision expenses, such as glasses, contact lenses and solution, and dental copays. You can use it to pay for dental and vision services for you, your spouse, or your qualified tax dependents, even if they're not enrolled in your PEBB medical or dental plan.

Here are the key differences between the two types of FSAs:

You can claim eligible medical expenses for your child through the end of the calendar year they reach 26.

Your child doesn't have to be a tax dependent to qualify, but they can be a son, daughter, adopted child, stepchild, or eligible foster child.

You have a long time to claim these expenses, but it's good to keep track of them so you don't miss the deadline.

If you're using an FSA to cover medical expenses, you'll be happy to know that it reimburses expenses for over-the-counter (OTC) drugs, medicines, biologicals, equipment, supplies, and diagnostic devices.

The list of eligible items is quite comprehensive, so be sure to check it out.

You can find more information on how to make OTC claims by following the instructions provided.

Deadlines and Rules are important to keep in mind when it comes to reimbursement.

You must incur all expenses by the end of the plan year, December 31. This means that any expenses you want to be reimbursed for must be incurred before the clock strikes midnight on December 31.

If you're no longer employed or have retired and still have money left in your account, you can still submit claims for reimbursement until March 31.