Special Foods: FSA Eligibility

Special foods 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). Special foods are not eligible with a dependent care flexible spending account (DCFSA) or a limited care flexible spending account (LCFSA).

What are special foods?

Special foods necessary to treat obesity are not eligible, as they may also satisfy normal nutritional requirements. However, specialty foods may qualify if necessary for a medical condition such as a gluten allergy, but only to the extent of the increased cost above what the same non-specialty item would cost.

Most foods are ineligible for reimbursement with a consumer-directed healthcare account. Dieting foods, for example, are not eligible.

Special foods that are eligible for reimbursement will require a Letter of Medical Necessity (LMN) indicating a specific medical condition that the food is necessary for. With the Letter of Medical Necessity (LMN), foods may be eligible for reimbursement under a consumer-directed healthcare account. Foods that are reimbursable with a consumer-directed healthcare account might treat a medical condition such as phenylketonuria, in which the amino acid phenylalanine can not be digested and accumulates to toxic levels in the blood stream. In order to treat the disease, only foods may be consumed which are low enough in protein content such that growth and development are limited. Therefore, specially formulated medical foods that nutritionally rich but do not contain the amino acid phenylalanine.

Foods that address specific medical needs in this case may be reimbursable with a consumer-directed healthcare account, however specific medical conditions like these are extremely rare and require a Letter of Medical Necessity (LMN) by a medical doctor. Foods that are purchased for dieting purposes or other conditions are not eligible for reimbursement with a consumer-directed healthcare account.

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 11/22/2017 12:40:28 PM