FSAs were designed to be vehicles for pre-tax savings — but it’s important for employees to remember to use their FSA balance by Dec. 31, 2022, and submit eligible health FSA claims for reimbursement by April 30, 2023. (Expenses cannot be incurred after termination of employment and must be filed within four months of termination date.)
Common Items are FSA Eligible, but also PPE, Sunscreen & Feminine Products
Employees may be familiar with some of the types of health care-related items that are eligible for reimbursement from their FSA and health savings accounts (HSAs).
There are some unique categories of products worth calling attention to:
- NEW: feminine hygiene products (tampons, pads, liners, cups, and sponges)
- NEW: Personal protective equipment (PPE) such as masks, hand sanitizer, and hand sanitizing wipes.
- Sunscreen (must be broad spectrum and at least SPF 15) and sunburn treatments
- Acne treatment
- Shipping and handling fees for eligible expenses
Potentially Eligible Items
Some items are considered “potentially eligible,” which means Further by HealthEquity, the FSA claims administrator, requires a Letter of Medical Necessity. Under IRS rules, some health care services and products are only eligible for health FSA reimbursement when a doctor or eligible licensed health care provider certifies that they are medically necessary. The letter is available at hellofurther.com. The provider must complete the letter indicating the patient’s diagnosis, the recommended treatment needed, and how this treatment will alleviate the medical condition. The employee certifies in the letter that the claimed expenses are a direct result of the medical condition described and are only being claimed due to the medical condition. The employee sends the letter to Further, and Further reviews for medical necessity.
Employees enrolled in an FSA will receive an email reminder from Portico about using their FSA balance by Dec. 31. If they have any specific questions about product reimbursement, they can contact Further at 800.859.2144.
1Notice 2021-15, IRS, Retrieved September 13, 2022 from www.irs.gov/pub/irs-drop/n-21-15.pdf