Know Your Benefits: FSA Eligible Expenses
Which expenses can be reimbursed by an FSA?
Your Health Care Reimbursement Flexible Spending Account lets you pay for medical care expenses not covered by your insurance plan with pre-tax dollars. The expenses must be primarily to alleviate a physical or mental defect or illness, and be adequately substantiated by a medical practitioner. The products and services listed below are examples of medical expenses eligible for payment under your FSA, to the extent that such services are not covered by your medical and dental insurance plan.
Unfortunately, we cannot provide a definitive list of “qualified medical expenses.” A determination of whether an expense is for “medical care” is based on all the relevant
facts and circumstances. To be an expense for medical care, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.
Key Takeaways From New Rule Preventing Surprise Billing
Recently, the federal government unveiled the first in a series of new rules designed to protect patients from financial hardship due to surprise medical bills and balanced billing. Surprise billing typically occurs when you receive emergency care from an out-of-network provider or when you receive nonemergency care at an in-network facility but are inadvertently (and often unknowingly) treated by an out-of-network health care provider.
The new protections apply to most emergency services, air ambulance services from out-of-network providers and nonemergency care from out-of-network providers at certain in-network facilities, including in-network hospitals and ambulatory surgical centers.
The rule will restrict excessive out-of-pocket costs to consumers from out-of-network and balance billing. This practice is already banned by Medicare and Medicaid. The interim rule extends protection to people insured through employer-sponsored and commercial health plans as well. The interim final rule will take effect on Jan. 1, 2022.