Captain Contributor Explains Eligible Expenses
Good news! Your FSA or HSA account now has even more spending power! The CARES Act of 2020, expanded the use of Health Savings Accounts and Flexible Spending Accounts to include more eligible healthcare items.
When you participate in a healthcare benefits account, such as an FSA or HSA, you set aside money to help cover out-of-pocket healthcare expenses. With either account, you can use the funds for yourself or a qualified dependent, like a spouse or child.
What is Covered as an Eligible Expense?
The IRS has published guidelines for qualified healthcare expenses that can be paid for with these accounts, and with the expanded list, you have even more options for using your benefits. In addition to common expenses like prescriptions, eye care, and co-pays, you can now buy over-the-counter medications and menstrual care products.
Exceptions
The list of eligible items and services are primarily to alleviate or prevent illness, however it doesn’t include expenses that are merely beneficial to general health. So while bandages, medications and sunscreen are covered expenses, vitamins, gym memberships and cosmetic surgery are not. For a full list of FSA eligible expenses, see IRS Publication 502.
If you have any questions, check your Summary Plan Description or contact your HR department for more information.