Shipping Fees: FSA Eligibility

Shipping and handling fees to obtain an item (e.g. medications) are reimbursable if the fees are required for the legal procurement of that item are eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Shipping and handling fees reimbursement is not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What are shipping and handling fees?

Individuals who are enrolled in an FSA, HSA or HRA can spend their funds on a huge range of qualifying medical products and services, and with proper documentation of these expenditures, they can be fully reimbursed after they are submitted to their benefits administrator. However, if account holders choose to shop for eligible products that will be shipped to their home or place of work, the question of whether these additional shipping fees are also eligible for reimbursement is often a point of confusion amongst consumer-directed healthcare account holders.

Luckily, as long as the additional shipping charges are necessary to ship a product that is eligible for reimbursement through a consumer-directed healthcare account, shipping fees are fully eligible. As long as the account holder has the necessary funds he/she can pick the ideal shipping option to suit his/her needs. There is no separate documentation to be submitted to the benefits administrator, as shipping fees typically are included on the invoice for the product in question.

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 12:25:20 PM