Are Hearing Aids an FSA Eligible Expense?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money from their paycheck to pay for eligible healthcare expenses. This tax-advantaged account reduces taxable income, providing a financial benefit for covered medical, dental, and vision costs. Funds contributed to an FSA are typically subject to a “use-it-or-lose-it” rule, meaning any unused money at the end of the plan year may be forfeited, though some plans offer a grace period or a limited carryover amount.

Eligibility of Hearing Aids

Hearing aids are considered eligible medical expenses for reimbursement through a Flexible Spending Account. This eligibility extends beyond the device itself to encompass a comprehensive range of related products and services. The Internal Revenue Service (IRS) classifies these as qualified medical expenses because they are for the diagnosis, treatment, or prevention of disease, or for affecting any body function.

The cost of the hearing aid device, whether prescribed or over-the-counter, qualifies for FSA reimbursement. Beyond the initial purchase, essential accessories such as hearing aid batteries, ear molds, cleaning solutions, storage cases, and dehumidifiers are also eligible expenses. Professional services related to hearing care, including hearing exams, tests performed by licensed audiologists, hearing aid fittings, and adjustments, can be covered by FSA funds. Repairs and maintenance services also fall under eligible expenses.

Substantiating Hearing Aid Expenses

To ensure reimbursement from an FSA, expenses must be substantiated with documentation. A valid receipt or itemized statement is typically required for each claim.

The IRS mandates that this documentation include: the date the service was received or the item was purchased, a clear description of the service or item, the exact dollar amount of the expense, and the name of the provider or vendor. For certain items or services, particularly those that might be considered dual-purpose, a prescription or a Letter of Medical Necessity from a healthcare professional may be required. Retain all original receipts and supporting documents, as credit card receipts or canceled checks alone usually do not provide sufficient detail for substantiation.

Submitting an FSA Claim

After collecting necessary documentation for eligible hearing aid expenses, the next step involves submitting a claim to the FSA administrator for reimbursement. Common methods for claim submission include online portals, mobile applications, or traditional mail-in forms. Many FSA providers offer an online platform where participants can log in, enter claim details such as the amount, provider, date of service, and the individual who received the service.

For online or mobile submissions, users typically upload digital images of their itemized receipts or Explanation of Benefits (EOB) forms. If submitting via mail, a completed claim form along with copies of the supporting documents must be sent. After submission, claims are generally processed within a few business days. Approved reimbursements are usually sent via direct deposit to a linked bank account, or a check may be issued, with direct deposit often being the faster option.