What is an "eligible expense" under the traditional health care FSA?
Eligible expenses for a health care FSA are generally defined in section 213(d) of the Internal Revenue Code (IRC). However, health and long-term care premiums, as well as long-term care expenses, are not FSA-eligible medical expenses. Examples of common out-of-pocket expenses covered by a health care FSA include copayments, deductibles and coinsurance; eye care, such as exams, LASIK surgery, eyeglasses and contact lenses for vision correction, and saline solution; hearing exams and hearing aids; laboratory fees; chiropractic treatment; orthodontia and dental work; and medicines, including prescription and over-the-counter (OTC).
You are encouraged to consult a tax advisor or IRS Publication 969, which provides guidance on the types of expenses that can be reimbursed from a health care FSA. To access Publication 969, visit the IRS website at www.irs.gov/formspubs/index.html.
May I use my health care FSA to obtain reimbursement of expenses for my spouse or dependent children, even if they are not covered under my medical plan?
Yes. Your spouse and dependents do not have to be covered under your medical plan in order for you to be reimbursed from your FSA for their eligible medical expenses.
I have coverage under my employer's High Deductible Health Plan (HDHP) and also contribute to a Health Savings Account (HSA). What happens if I elect coverage under my employer's health care FSA?
Generally, coverage under a health care FSA will make you ineligible to make contributions to your HSA. There are exceptions to this rule for health care FSAs that meet the definition of a "limited purpose" and/or "post deductible" health care FSA. Check with your employer to find out if a limited health care FSA or post deductible health care FSA is available to you.
I have coverage under my employer's High Deductible Health Plan (HDHP) and also contribute to a Health Savings Account (HSA). What happens if my spouse elects coverage under a health care FSA?
Usually, a health care FSA covers the expenses of the participant as well as the participant's spouse and dependents. Therefore, if your spouse has a traditional health care FSA, most likely your qualified medical expenses are covered under your spouse's FSA. If that's the case, then coverage under your spouse's health care FSA will make you ineligible to make contributions to your HSA. There are exceptions to this rule, with health care FSAs that meet the definition of a "limited purpose" and/or "post deducible" health care FSA. Check with your employer or your spouse's employer to find out if a limited health care FSA or post-deductible health care FSA is available to either of you.
Are the expenses of my domestic partner eligible?
Domestic partners can be same gender or opposite gender partners. The expenses of a domestic partner, whether opposite or same gender and even if covered under your health plan, are not eligible to be covered under your health care FSA, unless your domestic partner is a qualifying dependent for federal income tax purposes. A common-law spouse, as defined by the federal tax laws, is considered to be a spouse and not a domestic partner. Federal law does not recognize the union of same-gender partners, even if recognized by their state through a civil union or marriage.
Is mileage in conjunction with a medical visit or appointment a covered FSA expense?
Yes. Mileage and parking incurred to obtain medical care are covered FSA expenses. For 2006 incurred claims, the mileage rate is 18 cents per mile. Claim filing must be manual; enter the total mileage charge (traveled round trip x .18) as a separate expense on the claim form. The dates of travel must match the corresponding dates of service.
I had an FSA account with my prior employer and I noticed that your list of covered expenses doesn't include a particular item. Why is that?
FSA plans do not have to cover everything that the IRS allows; they can restrict what is reimbursable. The IRS only provides general guidance with regard to what expenses are covered. It is the responsibility of each employer (plan sponsor) to determine, through review of the IRS guidance, what expenses it deems to be within guidance and, therefore, to be covered under the FSA plan.
Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. FSA plans are administered by Aetna Life Insurance Company. This material is for informational purposes only. While this material is believed to be accurate as of the print date, it is subject to change.
What is an "eligible expense" under the traditional health care FSA?
May I use my health care FSA to obtain reimbursement of expenses for my spouse or dependent children, even if they are not covered under my medical plan?
I have coverage under my employer's High Deductible Health Plan (HDHP) and also contribute to a Health Savings Account (HSA). What happens if I elect coverage under my employer's health care FSA?
I have coverage under my employer's High Deductible Health Plan (HDHP) and also contribute to a Health Savings Account (HSA). What happens if my spouse elects coverage under a health care FSA?
Are the expenses of my domestic partner eligible?
Is mileage in conjunction with a medical visit or appointment a covered FSA expense?
I had an FSA account with my prior employer and I noticed that your list of covered expenses doesn't include a particular item. Why is that?