REVIEW QUALIFIED MEDICAL EXPENSES

Health Savings Accounts and Health Reimbursement Arrangements (small group only) are health care financing programs that enable insureds and employees to be reimbursed for qualified medical care expenses. Qualified expenses are defined under Section 213(d) of the IRS Code.

Medical care expense is defined as amounts paid for the diagnosis, cure, treatment or prevention of disease, and for treatments affecting any part or function of the body. Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness.

NOTE: Many HRA plans are designed by employers to reimburse employees only for qualified medical expenses applied to the plan deductible. Consequently, a medical expense could be a qualified expense, as defined by the IRS, but not reimbursable according to the employer’s HRA plan design. Depending on the plan chosen, these services may not be covered under your health benefit plan. Please refer to your health benefit plan for all benefits, limitations and exclusions.

Below are examples of both qualified and non-qualified medical expenses. For additional information, refer to IRS Publication 502 titled, “Medical and Dental Expenses”, Catalog Number 15002Q. The publication is available at the IRS web site, www.irs.gov or by calling 800-TAX-FORM (800-829-3676).