PPE is FSA Eligible; HSAs and Some HRAs Also Affected

Coronavirus protection. Medical protective surgical masks, hand sanitizer gel on white table.

 

Reimbursement accounts just had their eligibility list expanded to include personal protective equipment (PPE) to help fight against the spread of COVID-19.  Under Announcement 2021-7, issued by the IRS, PPE is now FSA eligible through December 31, 2022. Additionally, PPE is eligible for reimbursement through a Health Savings Account (HSA) and certain types of Health Reimbursement Arrangements (HRAs).

 

What PPE is FSA Eligible?

Under the new announcement, PPE is considered a qualified medical expense under Section 213(d) of the IRS Code. PPE includes:

  • face masks
  • hand sanitizer
  • sanitizing wipes

 

The IRS also considers these expenses eligible retroactively to January 1, 2020.

Participants in a Health FSA, HSA and certain types of HRAs can use their accounts to purchase PPE expenses. By expanding the eligibility list, the IRS hopes to provide greater flexibility for account holders as many Americans increase their healthcare purchases to prevent the spread of COVID-19. If you are unsure whether your plan is eligible for reimbursement, please contact P&A Group.

 

Additional New Eligible Expenses

In 2020, Congress passed the CARES Act, which allowed over-the-counter (OTC) medications to be reimbursable without a prescription or doctor’s note. Feminine care products, such as tampons and pads, were also classified as eligible expenses. The CARES Act released a years-long rule that previously prevented account holders from purchasing OTC medications unless accompanied by a prescription or letter of medical necessity form. There is no anticipated expiration date for these products’ eligibility.

 

Pro Tip: You can browse pre-approved FSA eligible expenses at FSA Store. Please check back for frequent updates as more items become available through FSA Store.

Please visit P&A’s COVID-19 Resource Center for the latest updates and changes during the ongoing pandemic.