Is an AED FSA Eligible for Reimbursement?

An Automated External Defibrillator (AED) is a portable device designed to deliver an electric shock to the chest to restore a normal heart rhythm in cases of sudden cardiac arrest. Flexible Spending Accounts (FSAs) are employer-sponsored benefit plans that allow employees to set aside pre-tax money for various healthcare expenses. A common question arises regarding whether an AED can be reimbursed through an FSA, linking the life-saving device with tax-advantaged savings. This article explores the eligibility of AEDs for FSA reimbursement.

Flexible Spending Accounts Explained

Flexible Spending Accounts are employer-established benefit arrangements allowing participants to contribute pre-tax income for qualified medical expenses, reducing taxable income. The Internal Revenue Service (IRS) defines “qualified medical expenses” in Publication 502 as costs for diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any body structure or function.

Funds within an FSA are subject to a “use-it-or-lose-it” rule, meaning unspent money may be forfeited by year-end. Many plans offer a grace period or a limited carryover amount into the next year. For 2025, the maximum carryover is $670.

AED Eligibility as a Medical Expense

An Automated External Defibrillator is considered an eligible medical expense for Flexible Spending Account reimbursement. Its classification as medical equipment under IRS guidelines aligns with the definition of medical care in IRS Publication 502. An AED is used for the diagnosis, treatment, and prevention of sudden cardiac arrest.

The device restores normal heart rhythm, affecting a body function. Its purpose is to mitigate and treat a life-threatening condition, placing it within qualified medical expenses. Therefore, an AED purchased for the medical care of the account holder, spouse, or a dependent can be reimbursed through an FSA.

Steps for AED Reimbursement

Obtaining reimbursement for an AED through a Flexible Spending Account requires specific documentation. A Letter of Medical Necessity (LMN) is a primary requirement, which is a formal note or prescription from a licensed healthcare provider. This letter must explicitly state the AED’s medical necessity for the individual or a qualified dependent.

You will also need to provide receipts or proof of purchase for the AED. These documents should show the purchase date, vendor, item, and total cost. Claims are submitted directly to the FSA administrator. Ensure all information is accurate and complete.

Important Considerations for Claiming an AED

When claiming an AED for FSA reimbursement, funds are specifically for personal medical expenses. An AED purchased for a business, public building, or community center would not qualify. The expense must directly relate to the medical care of the FSA account holder, spouse, or a dependent.

Maintaining thorough records is important for compliance and potential audits. This includes copies of the Letter of Medical Necessity, purchase receipts, and FSA administrator correspondence. While general IRS rules apply, specific FSA plans may have unique requirements. Consult your FSA plan administrator to confirm their requirements and ensure the purchase date falls within your plan year.