IRS FAQs Clarify When General Health Expenses are Qualified Medical Expenses

On Friday, March 17, 2023, the IRS announced they have assembled a series of frequently asked questions (FAQs) to clarify when certain nutrition, wellness, and general health expenses might qualify as medical expenses under the tax code.  These FAQs, along with Publication 502, clarify that when such expenses are for the treatment of a diagnosed condition, they can typically be reimbursed from group benefit plans such as health flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), and health savings accounts (HSAs).  Some examples of expenses addressed in the FAQs include “nutritional counseling, weight-loss programs, gym memberships, and treatment for substance use disorders.”

Let your IMA Benefits team know if you have any questions.  We review affordability every year with our applicable large employer (ALE) clients and are happy to assist as you strategize for your plan year beginning in 2022.

IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information. This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.