Legal Fees: FSA Eligibility

Legal fees with a Letter of Medical Necessity (LMN) from a medical doctor are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA). Legal fees are not eligible with a dependent care flexible spending account (DCFSA) or a limited care flexible spending account (LCFSA).

What are legal fees?

Legal fees are also known as legal fees paid to authorize treatment for mental illness. Legal fees can be included in medical expenses that are eligible for reimbursement with a consumer-directed healthcare account if the legal fees were paid out of necessity for authorizing the treatment of a mental illness. However, if the legal fees were paid to manage a guardianship estate or the management of affairs of a person receiving mental health treatment, then the legal fees are not eligible for reimbursement.

Authorizing mental health treatment may require the payment of legal fees for a variety of reasons, in particular if the individual receiving mental health treatment must be legally compelled to undergo this treatment. In these cases, the legal fees are eligible for reimbursement, so long as a medical doctor has reviewed the legal fees and provided a Letter of Medical Necessity (LMN) stating that the fees were necessary for that individual's mental health and wellbeing. Without the LMN, the fees aren't eligible for reimbursement.

On the other hand, there may be other fees and expenses associated with helping that individual receive mental health treatment which can't be considered eligible for reimbursement. These feeds might include management fees for a guardianship estate, or management fees for that individual's other affairs.

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 8:31:26 AM