ADDITIONAL RESOURCES AVAILABLE ABOVE
Flexible Spending Accounts and Health Reimbursement Arrangements

FLEXIBLE SPENDING ACCOUNTS (FSA)
and
HEALTH REIMBURSEMENT ARRANGEMENTS (HRA)

Use Custom Flex or MyFlexOnline to:
Check account balance, deposits, reimbursements and track receipts


Qualified Expenses

The list provided here is a guide for the most commonly used items. A more itemized list is available on MyFlexOnline which also indicates what is needed for claim submission or if it is eligible for purchase with the FSA Card. You may also call CDB for more information.
» Medical, Prescription & Over-the-Counter Items
» Dependent Care
» Adoption Assistance
» Parking/Transit

Download a PDF of all Qualified Expenses.


MEDICAL, PRESCRIPTION & OVER-THE-COUNTER ITEMS

Save on Items Not Covered by Health Insurance

Coverage of items subject to your employer's plan.

QUALIFIED HEALTHCARE ACCOUNT EXPENSES

(if purchased during the plan year)

Acupuncture
Alcoholism treatment
Ambulance
Artificial limbs/teeth
Braces
Chiropractors
Christian Science practitioner's fees
Contact lenses & solutions
Copayments
Costs for physical or mental illness
Crutches
Deductibles
Dental services
Dentures
Diabetic test strips
Diagnostic tests & labs
Dietary supplements prescribed by a doctor
Drug & Medical supplies (syringes, needles, etc.)
Eyeglasses*
Eye examinations
Eye surgery (cataracts, LASIK, etc.)
Hearing devices & batteries
Hospital bills
Insulin
Laboratory tests
Laser eye surgery
Medical supplies
Obstetrical expenses
Orthodontia (braces)
Orthopedic devices
Over-the-counter drugs (see below)
Oxygen
Physician fees & copayments
Prescription Drug Medications
Psychiatric care
Psychological services & care
Rental of Medical Equipment
Routine physicals & tests
Smoking cessation drugs*
Smoking cessation programs
Sunglasses*
Surgical services & fees
Weight loss programs or OTC drugs (if associated with a specific disease)*
Wheelchair
Vitamins*
X-rays

Only healthcare expenses not reimbursed by insurance can be claimed.
*if prescribed by a doctor or may require a doctor's letter of medical necessity

Ineligible expenses under the healthcare account:
  • Cosmetic surgery & procedures
  • Dental bleaching
  • Marriage or family counseling
  • Premiums you or your spouse pay for insurance
  • Weight loss for general health or appearance

CHANGES FOR OVER-THE-COUNTER MEDICATIONS

As a result of Health Reform legislation, over-the-counter medications are only eligible with a doctor's prescription.

Since a prescription is required for these expenses, the FSA Card cannot be used to buy them. However, they are still eligible if you pay up front and request reimbursement. See below for more information.

Listed below are some of the items that will require a doctor's prescription to be eligible for reimbursement from the Healthcare FSA:

  • Asthma medications
  • Cold, flu & allergy medications
  • Cold relief syrup or tablets
  • Cough drops or syrup
  • Flu relief tablets or liquid
  • Sinus medications
  • Arthritis pain reliever
  • Pain relievers, aspirin & non-aspirin
  • Throat pain medications
  • Acid reducers
  • Antacid gum, liquid or tablets
  • Anti-diarrhea medications
  • Laxatives
  • Pinworm treatment
  • Upset stomach medications

FILING CLAIMS FOR OVER-THE-COUNTER MEDICATIONS

An FSA Claim Form, receipt and doctor's prescription is required for over-the-counter medicines reimbursed under the Healthcare FSA.

If a physician has prescribed an over-the-counter medicine for ongoing treatment (such as daily aspirin or a daily antihistamine), submitting a copy of the prescription with each claim will result in the fastest reimbursement.

If you provided a copy of the prescription already and do not wish to include it in future submissions, you may note this on the claim form. This additional step for CDB may slow the reimbursement as we will need to verify the original claim submission in order to process additional claims.


DEPENDENT CARE FOR CHILD AND ADULT/ELDER CARE

CHILD DAYCARE expenses that qualify must allow you and your spouse, if you are married, to work or look for work:

  • Nanny, babysitter, housekeeper, and nurse's fees thru age 12, for services provided inside your home, are eligible to the extent they are attributable to child care expenses and expenses of incidental household services.
  • Dependent care expenses incurred for services outside your home, providing they are incurred for the care of a qualifying dependent that regularly spends at least eight hours per day in your home.
  • Registration fees to a daycare facility are eligible as long as the fees are allocable to actual care and not described as materials or other fees.
  • Pre-K or nursery school expenses are eligible, even if the school also furnishes lunch and educational services.
  • Before and after school care thru age 12.
  • Day camp expenses thru age 12 are eligible if the day camp's main purpose is the dependent child's well-being and protection.
  • Food and incidental expenses (diapers, activities, etc.) may be eligible if part of dependent care charge.
  • Expenses paid to a relative (e.g. child, parent, or grandparent of participant) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.
  • FICA and FUTA payroll taxes of the daycare provider.

Child dependent care expenses that DO NOT qualify:

  • Kindergarten fees are almost always an education expense and should never be reimbursed under a dependent care plan.
  • Elementary school expenses for a child in first grade or higher.
  • Overnight camp.
  • Food, transportation, and incidental expenses (diapers, activities, etc.) are not eligible if charged separately from dependent care expenses.
  • Expenses paid to a housekeeper, maid, cook, etc. are not eligible, except where incidental to child care.
  • Mass transit and parking.

ELDER and ADULT DEPENDENT DAYCARE expenses that qualify must allow you and your spouse, if you are married, to work or look for work:

  • Housekeeper and nurse's fees, for services provided inside your home, are eligible to the extent they are attributable to elder care expenses and expenses of incidental household services.
  • Elder care expenses incurred for services outside your home, providing they are incurred for the care of a dependent that regularly spends at least eight hours per day in your home.
  • Food and incidental expenses may be eligible if part of dependent care charge.
  • Expenses paid to a relative (e.g. child) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.
  • FICA and FUTA payroll taxes of the daycare provider.

Elder and adult dependent care expenses that DO NOT qualify for reimbursement:

  • Overnight stays at medical or recreational facilities.
  • Food, transportation, and incidental expenses (diapers, activities, etc.) are not eligible if charged separately from dependent care expenses.
  • Expenses paid to a housekeeper, maid, cook, etc. are not eligible, except where incidental to adult dependent care.
  • Mass transit and parking.

Limitations: Child and Elder/Adult Dependent Care expenses may not exceed the smaller of the following limits:

  • The maximum allowed under the plan.
  • $5,000 (if you are married and filing a joint tax return or are filing as single, head of household) and $2,500 if you are married and separate returns are filed.
  • If you file as single or as head of household, you can make annual contributions up to the lesser of $5,000 or the amount of your earned income. Note: Only the custodial parent may participate in a dependent care FSA.
  • Your taxable compensation (after all compensation reduction elections). If you are married, your spouse's actual or deemed earned income.
  • Eligible expenses include daycare costs for dependent children under the age of 13, or a child who is physically or mentally incapable of self care.
  • The child or adult dependent must spend at least eight hours a day in your household.
  • Eligible expenses include daycare costs for dependent elders or a dependent who is physically or mentally incapable of self care.

For additional information CLICK HERE to view IRS Publication 503.


ADOPTION ASSISTANCE

Adoption expenses that qualify include:

  • Home study and application fees
  • Reasonable and necessary legal adoption fees
  • Court costs
  • Attorney fees
  • Agency fees
  • Medical services and counseling
  • Travel and lodging fees
  • Other expenses which are directly related to, and the principal purpose of which is for the legal adoption of an eligible child

Adoption expenses that DO NOT qualify for payment by the plan:

  • Adoption of a child belonging to the participant's spouse
  • Illegal adoption fees
  • Surrogate parenting arrangements
  • Legal adoption expenses for which another deduction or credit is allowed

Children that qualify:

  • Individual who has not attained the age of 18 as of the time of the adoption.
  • A child that is physically or mentally incapable of caring for himself.
  • A child with special needs who cannot or should not be returned to the home of his or her parents and a specific factor or condition makes it reasonable to conclude that the child cannot be placed with adoptive parents unless assistance is provided as determined by a state. The child must be a citizen or resident of the United States.

Please Note:

Although you won't save FICA on contributions to the Adoption Assistance Plan, you will save federal and state tax (where applicable). Consult your tax advisor for details.

For additional information CLICK HERE to be linked to the IRS website for more information about Adoption Credit and Adoption Assistance Programs.


PARKING/TRANSIT

Transit and parking expenses for travel to and from work that qualify:

  • Transit Passes: A pass, token, fare card, voucher or similar item entitling a person to transportation on mass transit facilities or provided by a person who transports people for compensation or hire in a vehicle which seats at least six adults, excluding the driver. CDB has partnered with METRO to permit members to purchase bus passes using their Transit FSA dollars. Go to FORMS & FAQs page for forms and links to assist you.
  • Qualified Parking: Parking provided on or near the employer's business premises or at a location from which the employee commutes by carpool, commuter highway vehicle, etc.
  • Commuter Highway Vehicle: Transportation provided by an employer to an employee, in a vehicle which seats at least six adults (excluding the driver), in connection with travel between the employee's home and work, provided that 80 percent of the vehicle's mileage is reasonably expected to be for transporting employee from home to work or on trips where at least half of the adult seating capacity is filled by employees.