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Qualified and Non-Qualified Medical Expenses

Use your health care account to pay for, or get reimbursed for, a variety of health care expenses. See the complete list
of qualified medical, dental, vision and pharmacy expenses in IRS Publication 502—Medical and Dental Expenses. See the complete list of qualified dependent care expenses for a dependent care FSA in IRS Publication 503—Child and Dependent Care Expenses.

Qualified Medical Expenses

  • Acupuncture
  • Alcoholism (rehab, transportation for medically advised attendance at AA)
  • Ambulance
  • Amounts covered under another health plan
  • Annual physical examination
  • Artificial limbs/teeth
  • Birth control pills/prescription contraceptives
  • Body scans
  • Breast reconstruction surgery
  • Chiropractor
  • Contact lenses
  • Crutches
  • Dental treatments
  • Eyeglasses/eye surgery
  • Hearing aids
  • Home care
  • Long-term care expenses
  • Medicines (prescribed, not imported from other countries)
  • Nursing home
  • Nursing services
  • Optometrist
  • Oxygen
  • Stop-smoking programs
  • Surgery
  • Telephone equipment and repair for hearing-impaired
  • Therapy
  • Transplants
  • Weight-loss program (if prescribed by a physician for a specific disease)
  • Wheelchairs
  • Wigs (if prescribed)

Non-Qualified Medical Expenses

  • Babysitting, child care, and nursing services for a normal, healthy baby (may qualify under a dependent-care FSA)
  • Dancing lessons
  • Diaper service
  • Elective cosmetic surgery
  • Electrolysis or hair removal
  • Funeral expenses
  • Future medical care
  • Hair transplants
  • Health club dues
  • Insurance premiums other than those explicitly included
  • Medicines and drugs from other countries
  • Nonprescription drugs, medicines, and supplements (unless prescribed)
  • Nutritional supplements, unless recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician
  • Teeth whitening

The penalty for using HSA funds for non-qualified medical expenses is 20%. Keep all itemized receipts and copies of prescriptions for over-the-counter medications in case of an IRS audit.