Is LASIK FSA Eligible? Using Your FSA for LASIK

Flexible Spending Accounts (FSAs) offer a valuable way to pay for healthcare costs with pre-tax dollars. These employer-sponsored accounts allow individuals to set aside a portion of their income to cover qualified medical expenses. LASIK, or Laser-Assisted In Situ Keratomileusis, is a surgical procedure designed to correct common vision problems, reducing or eliminating the need for glasses or contact lenses. This article explores how FSAs can be utilized for LASIK surgery.

Understanding FSA Eligible Expenses

The Internal Revenue Service (IRS) defines qualified medical expenses as costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any structure or function of the body. This broad definition encompasses a wide array of healthcare services and products, including doctor visits, prescription medications, dental care, and vision care such as eyeglasses and contact lenses.

These expenses must be primarily for medical care, distinguishing them from cosmetic procedures or general health expenses. For instance, a doctor’s visit is eligible, but a gym membership generally is not, unless prescribed for a specific medical condition. The intent behind the expense determines its eligibility under FSA guidelines.

LASIK as a Qualified Medical Expense

LASIK surgery is considered a qualified medical expense by the IRS. This classification is based on the procedure’s purpose: correcting defective vision, a physical condition affecting a bodily function. The IRS specifically includes eye surgery to treat vision problems as a qualified medical expense.

The distinction lies in the medical necessity of the procedure rather than its cosmetic outcome. LASIK corrects refractive errors like nearsightedness, farsightedness, and astigmatism, allowing for improved vision without corrective lenses. This aligns with the IRS’s definition of expenses incurred for the prevention or alleviation of a physical defect or illness.

How to Use Your FSA for LASIK

Using your FSA for LASIK involves two methods: direct payment with an FSA debit card or seeking reimbursement. Many FSA plans provide a debit card linked directly to your account, allowing payment for eligible expenses at the time of service. When using the card, the transaction is approved if the purchase is for an eligible expense.

If you pay for the LASIK procedure out-of-pocket, you can submit a reimbursement claim to your FSA administrator. Required documentation includes an itemized receipt or an Explanation of Benefits (EOB) from your insurance carrier. This documentation must clearly state the date of service, the provider’s name, a description of the service, and the amount charged.

The “use-it-or-lose-it” rule means funds not used by the end of the plan year are forfeited. Employers may offer a grace period, up to 2.5 months after the plan year ends, allowing additional time to incur and claim expenses. Alternatively, some employers may allow a carryover of unused funds, with the maximum amount set at $660 for plan years ending in 2025. Employers can offer either a grace period or a carryover, but not both; confirm your plan’s specific provisions.