Lead-Based Paint Removal: FSA Eligibility

Lead-based paint removal with a Letter of Medical Necessity (LMN) from a medical doctor is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA). Lead-based paint removal is not eligible with a dependent care flexible spending account (DCFSA) or a limited care flexible spending account (LCFSA).

What is lead-based paint removal?

Paint that includes lead dries faster, is more durable, appears fresher, and resists corrosion-causing moisture. Since lead-based paint contains lead, it is not only an excellent paint, but it is also a source of nervous system damage, stunted growth, kidney damage, and delayed development in human beings. Therefore, it is best to remove lead paint, instead of leaving it around, especially if there is a human being living in proximity to the lead-based paint who has any likelihood of eating it.

To that end, anyone with a consumer-directed healthcare account may find eligible for reimbursement the expenses associated with removing lead-based paint, so long as a medical doctor has written a Letter of Medical Necessity (LMN) for said purpose. The LMN must cover the fact that the account holder has a child dependent who lives in contact with surfaces covered with lead-based paint and who has or has had lead poisoning from eating the paint. Lead poisoning in a child is extremely dangerous, and so lead-based paint removal is an excellent thing to do for the child.

The other option besides removing the lead-based paint is to cover it up with a material such as drywall, paneling, or wallboard. These items must be treated as capital expenses, which are still eligible for reimbursement in the same fashion as paint removal, but may only be counted at the amount reduced by the home's increased value. The increased value would come as a result of adding some sort of covering such as drywall to go over the lead-based paint, and an appraiser can help with determining that amount.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

 


AZ-PROD-WEB01 11/19/2017 8:25:22 AM