How are qualified medical expenses determined? Actually, the qualified is determined by IRS Medical and Dental Expenses Publication 502 and there are 4 qualified expense categories:
Medical Supplies & Equipment, such as blood sugar test kit, lactation supplies, back brace, etc.
Medical Practices, such as mental therapy, physician office visit, physical examination, etc.
Medical Services, such as inpatient care, nursing services, guide dog or other service animals, etc.
Meals, lodging and transportation, such as meals and lodging included in medical care and transportation expenses for medical purposes, etc.
Dentist visit or Dental treatment, such as orthodontia, the application of sealants, fluoride treatments, X-rays, fillings, extractions, etc.
Artificial teeth, dentures
Ophthalmologist visit, eye exam, eye surgeries
Eyewear, such as prescription glasses, prescription contact lenses, prescription sunglasses, etc.
Vision disabled auxiliary, such as braille books and magazines.
Prescribed Medicines and Drugs
OTC Medicines and Drugs
Other OTC Products
Read more about Rx and LMN and OTC Medication
**Please note that eligible expenses for a traditional HRA are determined at the discretion of the Employer toward these categories.
**Please note that ONLY dental and vision expenses are eligible for a Limited Purpose FSA.
Some ineligible expenses examples
Cosmetic surgery or procedures
Exercise and fitness programs for general health
Non-medical personal care products, such as bug spray, cotton balls, dental floss, etc.
If you're wondering whether an item or service is eligible under these categories, here are a few ways to find out.
You can view a comprehensive list of eligible expenses HERE.