What FSA expenses, HRA expenses and HSA expenses can be reimbursed?
You can use your Health FSA, HRA, or HSA to reimburse yourself for medical and dental expenses that qualify as federal income tax deductions (whether or not they exceed the IRS minimum applied to these deductions) under Section 213(d) of the tax code.
Whose expenses can be reimbursed?
HSA - Money in your HSA can be used to reimburse yourself for medical and dental expenses incurred by you, your spouse or eligible dependents (children, siblings, parents and others who are considered an exemption under Section 152 of the tax code).
HRA - Money in the HRA can only be used to pay for eligible medical expenses incurred by employees and their dependents enrolled in the HRA. An employer may limit what expenses are eligible under an HRA plan.
Health FSA - Money in the FSA can be used to reimburse yourself for medical and dental expenses incurred by you, your spouse or eligible dependents (children, siblings, parents and other dependents as defined in your plan documents).
"Medical care" expenses as defined by IRS Code, Section 213(d) include amounts paid for the diagnosis, treatment, or prevention of disease, and for treatments affecting any part or function of the body. The expenses must be to alleviate or prevent a physical defect or illness. Expenses for solely cosmetic reasons generally are not expenses for medical care. Examples include face lifts, hair transplants, and hair removal (electrolysis). Also, expenses that are merely beneficial to one's general health (for example, vacations) are not expenses for medical care.
The following guidelines relate to expenses currently allowed and not allowed by the Internal Revenue Service as deductible medical expenses.
Questions regarding reimbursable health care expenses should be referred to a tax consultant.