Are Strollers FSA Eligible for Reimbursement?

A Flexible Spending Account (FSA) is an employer-sponsored benefit allowing individuals to set aside pre-tax money from their paycheck for eligible healthcare expenses. This provides a tax advantage, as funds are not subject to federal income, Social Security, or Medicare taxes. FSAs help participants manage out-of-pocket medical, dental, and vision costs for themselves, their spouse, and qualifying dependents.

Understanding FSA Eligible Expenses

The Internal Revenue Service (IRS) establishes guidelines for FSA-eligible expenses. According to IRS Publication 502, “medical care” is defined as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This means the primary purpose of the expense must be for medical care. Expenses merely beneficial to general health, personal convenience, or cosmetic purposes are not eligible.

Commonly eligible expenses include doctor visits, prescription medications, dental care, and vision care like eye exams and contact lenses. Over-the-counter medicines and certain medical supplies, such as bandages and blood pressure monitors, are also covered. Items for general well-being or personal comfort, like vitamins or health club memberships, are excluded unless they meet specific medical necessity criteria.

Strollers and Medical Necessity

Standard strollers, intended for general transportation and convenience, are not eligible for FSA reimbursement. Their primary purpose does not fall under the IRS definition of medical care for diagnosis, cure, mitigation, treatment, or prevention of disease. They are considered personal care items, similar to regular diapers or car seats, and are general expenses incurred regardless of a specific medical condition.

An exception exists when a stroller serves a primary medical purpose for an individual with a specific health condition. If a specialized stroller is required to alleviate or prevent a physical or mental disability or illness, it is considered medically necessary. Examples include strollers for children with severe mobility issues needing specialized support, or those equipped to transport medical equipment like oxygen tanks or feeding pumps. In these cases, the stroller functions as durable medical equipment.

To qualify for reimbursement, a qualified medical professional must clearly substantiate the medical necessity. This involves demonstrating the individual would not have incurred the expense but for the medical condition. The specialized features of the stroller must directly relate to treating or mitigating the diagnosed condition. Without this direct medical link, a stroller remains ineligible for FSA funds.

Obtaining Reimbursement for Medically Necessary Strollers

For a specialized stroller to be reimbursed through an FSA, specific documentation is required. The most important document is a Letter of Medical Necessity (LMN) from a licensed healthcare provider, such as a physician or therapist. This letter substantiates that the stroller is essential for a specific medical condition.

The LMN should contain detailed information, including the patient’s specific medical condition or diagnosis, how the specialized stroller alleviates the condition, and the duration it is needed. It should also explain why a standard stroller would not meet the medical needs, highlighting the specialized equipment’s unique features. Some FSA administrators provide specific forms, while others accept a letter on the provider’s letterhead.

Once the LMN is obtained, submit it along with a claim form and an itemized receipt for the specialized stroller to the FSA administrator. The receipt should show the date of purchase, item description, and amount paid. Keep copies of all submitted documentation for personal records. While an LMN increases the likelihood of reimbursement, it does not guarantee approval, as the final decision rests with the FSA plan administrator based on IRS regulations.