Amidst the ever-evolving landscape of health and wellness, distinguishing between legitimate medical expenses and general wellness costs has become increasingly important. The IRS recently highlighted concerns over the misclassification of such expenses under health spending plans like FSAs, HSAs, HRAs, and MSAs. It’s crucial to understand that not all health and wellness expenses qualify as medical expenses for tax purposes.

Consider the case of an individual managing a health condition, tempted by advertisements to use health spending accounts for non-medical wellness products. These expenses, often marketed aggressively, are not eligible for reimbursement under IRS rules. For example, buying specialty foods to manage a condition such as diabetes, even with a doctor’s note, does not translate into a qualified medical expense under tax law.

The IRS warns against companies that mislead consumers into thinking that general wellness expenses can be reimbursed through health spending accounts. It’s essential to understand that not all expenses related to personal health and wellness meet the strict criteria set forth for medical expenses. The IRS recommends that consumers consult their detailed FAQ page on medical expenses related to nutrition, wellness, and general health.

How We Can Help

At PS Administrators, we excel in managing consumer-driven health plans and ensuring they align with IRS regulations. Our expertise helps clarify the complex rules surrounding medical expenses, allowing you to make informed decisions about your health spending. Contact us to safeguard your health investments and maintain the integrity of your health spending plan.