Qualified expenses and premiums

Section 213(d) of the Internal Revenue Code defines qualified expenses and premiums, in part, as “medical care” amounts paid for insurance or “for the diagnosis, cure, mitigation, treatment, or prevention of disease…” Expenses solely for cosmetic reasons generally are not eligible (e.g. face-lifts, hair transplants, hair removal, etc.).   Insurance premiums paid by an employer, or premiums that are or could be deducted pre-tax through your or your spouse’s Section 125 cafeteria plan, are not eligible for reimbursement.

Common qualified out-of-pocket expenses include deductibles, co-pays, coinsurance, prescription drugs, and certain over-the-counter (OTC) items.  Eligible insurance premiums include medical, dental, vision, tax-qualified long-term care (subject to IRS limits), Medicare Part B, Medicare Part D, and Medicare supplement plans.  Download the document below to view a more detailed list.