Are Pregnancy Tests Covered by FSA?
Maximize your healthcare savings. Learn which everyday medical expenses are eligible for reimbursement through your FSA.
Flexible Spending Accounts (FSAs) offer a valuable employee benefit, allowing individuals to save on healthcare costs using pre-tax dollars. Pregnancy tests are eligible expenses under these accounts.
Understanding Flexible Spending Accounts
Flexible Spending Accounts (FSAs) are employer-sponsored plans allowing employees to set aside pre-tax money for qualified medical expenses. Funds are contributed through payroll deductions, reducing taxable income. FSAs help participants pay for healthcare costs not covered by insurance, from co-payments to prescription medications.
FSAs have a “use-it-or-lose-it” rule: any unused funds at the end of the plan year are forfeited. Employers can offer flexibilities to mitigate this rule. Options include a grace period (allowing up to an additional 2.5 months to incur new expenses) or a carryover (permitting a maximum of $660 to roll over). Employers choose one option.
Eligibility of Pregnancy Tests for FSA Reimbursement
Pregnancy tests are eligible for reimbursement through a Flexible Spending Account. They fall under Internal Revenue Service (IRS) guidelines for medical expenses, specifically IRS Code Section 213, which defines medical care as amounts paid for diagnosis, cure, mitigation, treatment, or prevention of disease. Pregnancy tests serve a diagnostic purpose by detecting specific hormones to confirm pregnancy.
Before 2020, many over-the-counter (OTC) medical products required a doctor’s prescription to be FSA-eligible. The Coronavirus Aid, Relief, and Economic Security (CARES) Act removed this requirement, making OTC medicines and products, including pregnancy tests, eligible without a prescription. This simplifies the process, allowing individuals to purchase these items directly and seek reimbursement with an itemized receipt. Eligibility is determined by the item’s direct medical purpose.
How to Use Your FSA for Eligible Purchases
Using your FSA for eligible purchases, like pregnancy tests, can be done through two methods: an FSA debit card or submitting a claim for reimbursement. Many FSA plans provide a debit card linked directly to your account, allowing immediate payment at the point of sale. Funds are automatically deducted from your FSA balance.
It is important to retain all itemized receipts. The IRS requires substantiation for all FSA purchases to confirm eligibility. For purchases made out-of-pocket, submit a claim with required documentation to your plan administrator. Acceptable documentation includes an itemized receipt or an Explanation of Benefits (EOB) from a provider, detailing the patient’s name, provider name, date of service, type of service or product, and the expense amount.
Other Common Eligible Expenses
Beyond pregnancy tests, FSAs cover a wide range of common medical and healthcare-related expenses. Many over-the-counter medications are eligible, including pain relievers, allergy medications, cold and flu remedies, and antacids. The CARES Act also made feminine hygiene products eligible for reimbursement.
Other frequently covered items include first-aid supplies like bandages and antiseptic wipes, sunscreens with an SPF of 15 or higher, and various diagnostic products such as blood pressure monitors and blood sugar test kits. Prenatal vitamins are also eligible, considered a medical expense for pregnancy.