2023 Health FSA limit increases to $2,850
2023 Carryover maximum increases to $570
See exceptions for 2021 due to COVID 
Estimate your tax savings for medical expenses


Health FSA reimbursement options:


IRS rules-OTC expenses
IRS rules-Child's health expenses
Orthodontia reimbursement option

Qualifying health care expenses

Qualifying photo of medicine islehealth care expenses are those that are incurred by the employee, the employee's spouse, or the employee's qualifying child or qualifying relative during the plan year for medical care (as defined in Section 213(d) of the Internal Revenue Code), excluding all insurance premiums and long-term care expenses. Only the portion of the expenses you owe after insurance payments can be claimed. See maximum annual health care expense claim limits.

Qualifying health care expenses include amounts incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting any part or function of the body. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness.

Expenses qualify for the medical FSA based on when they are incurred, not when paid. Estimate your tax savings for medical expenses

 

IRS Rules for OTC Medications

Rx FSA reimburses expenses for over-the-counter (OTC)drugs, medicines, biologicals, equipment, supplies and diagnostic devices. See complete list of eligible items.

The following categories of items do not require a doctor’s prescription (For more information, see OTC claim instructions and complete list of eligible expenses):

  • acid controllers
  • allergy and sinus
  • anti-gas/diarrhea products
  • anti-Itch and insect bite products
  • baby rash ointments
  • cold sore remedies
  • cough, cold and flu products
  • digestive aids
  • feminine anti-fungal/anti-itch
  • hemorrhoid remedies
  • laxatives
  • motion sickness
  • pain relief
  • respiratory treatments
  • sleep aids & sedatives
  • stomach ailment remedies

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IRS Rules for Coverage of Your Child's Medical Expenses

You may claim eligible medical expenses for your child through the end of the calendar year in which they reach 26. Your child may be a son, daughter, adopted child, stepchild, or eligible foster child.  Children no longer have to be tax dependents in order for you to be reimbursed for their medical expenses.

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Eligible expenses include (For more information, see OTC claim instructions and complete list of eligible expenses):

  • allergy relief
  • ambulance service
  • athletic braces and supports
  • artificial limb/teeth
  • bereavement & grief counseling
  • blood pressure monitors
  • birth control, pregnancy & fertility kits and artificial insemination
  • breast pumps & accessories
  • co-pays and routine physical exams
  • contact lenses and solutions
  • Christian Science practitioners fees
  • prosthesis
  • chiropractor fees
  • prescription co-payments/drugs
  • deductibles
  • dental expenses and dentures (bonding & sealants)
  • feminine products including menstrual care products
  • hearing aids- including batteries
  • insulin
  • medical alert bracelet
  • midwife services
  • nursing services
  • orthodontia (braces)
  • oxygen
  • psychotherapy & psychoanalysis counseling
  • substance abuse treatment including smoking cessation 
  • transfer of medical records charges 
  • transportation expenses related to illness (see sample mileage claim)
  • vision care expenses such as eyeglasses/contacts/LASIK eye surgery and artificial eye

See complete list of eligible expenses

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Orthodontia reimbursements

A participant who pays in a lump sum may claim the amount at once. Previously, participants were required to claim monthly payments. Claims may be made for a lump sum of the entire amount of the participant's liability (up to the annual limit). To be reimbursed for orthodontia, the following criteria must be met:

  1. The braces must have been placed (or the initial work provided) and must still be on the patient.
  2. You must submit proof of payment with your reimbursement request. The proof of payment can be a paid receipt from your provider, a credit card receipt or your credit card statement.

Call ASI at 800-659-3035 if you have questions about making a claim for orthodontia.

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Ineligible health expenses include (For more information, see OTC claim instructions and complete list of eligible expenses):

  • cosmetic procedures*; e.g. face-lifts, skin peeling, teeth whitening, veneers, hair
  • replacement, removal of spider veins
  • non-prescription sunglasses
  • toiletries
  • expenses that are merely beneficial to your general health herbs, vitamins, and nutritional supplements (if purchased solely for general good health purposes)
  • long-term care expenses

* These do not generally qualify. For a medically necessary cosmetic procedure, enclose a note with the claim stating the existing medical condition and why the treatment is required.

See the FSA Summary Plan Description and FSA Plan Document for more details.

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illustrations of dental work, childcare, prescriptions, & eyeglasses

Flexible Spending Accounts
Reimbursement options
Annual Reimbursement Limits

Carryover Option

You can carry over $570 of your unused Health FSA balance from 2022 to 2023. You can use these funds for claims incurred through 12-31-2023. (see example)