Reimbursable Expenses under FSAs

There are different types of expenses that can be reimbursed to employees who participate in flexible spending arrangements (FSAs).

Expenses that can be reimbursed to employees who participate in a health care FSA:

• deductibles or coinsurance not covered by the health insurance plan
• expenses for diagnosis, treatment, cure, or prevention of disease, if prescribed by a physician
• prescription drug expenses
• reimbursement of over-the-counter drug expenses is not permitted unless they are prescribed drugs (certain exceptions apply; for example, insulin and breast pumps for lactation are reimbursable)
• orthodontia if not for cosmetic purposes
• medical expenses for hearing aids or vision care, unless as premiums for contact lens replacement insurance or expenses for contact lens solution
• expenses paid to a chiropractor or Christian Science practitioner

Expenses that can be reimbursed in a dependent care FSA:

• the care of dependent children under age 13 by a babysitter
• day care center expenses
• expenses in a before-school or after-school program

Nonreimbursable expenses. The following are expenses that are not eligible for reimbursement:

• expenses to benefit general health (for example, vitamins or food)
• insurance premiums for other health plans (except Medicare Plan B)
• cosmetic surgery or liposuction to improve the patient's appearance
• dancing lessons, swimming lessons, or dues paid to a health club for general health or to relieve physical or mental discomfort if not related to a particular medical condition
• illegal drugs
• life insurance and long-term care insurance premiums
• personal use items, unless used to prevent or alleviate mental or physical defect or illness
• over-the-counter drugs, unless they are prescribed drugs or are eligible expenses (for example, insulin and lactation supplies)