Make Insect Repellent FSA-./HSA-Eligible
It’s not currently clear whether or not insect repellent will qualify as eligible under an FSA/HSA. But this is an immediate problem for Americans – Between 2004 and 2016, the number of reported cases of tick-borne disease doubled and has increased into 2020 (CDC). Against this backdrop, we do not have clear guidance as to whether or not insect repellent will meet the requirements for it to constitute prevention under medical care.
What is currently eligible?
IRC 213(d) currently defines qualified medical care as “amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body” In order for medical products to qualify as prevention, the IRS has also indicated that there must be an imminent probability of contracting a disease or illness without the use of the product. Currently, no types of insect repellent are FSA-/HSA-eligible, but given their role in preventing the spread of vector-borne illnesses like West Nile virus, Lyme disease and the increased prevalence of these viruses, this is a logical area for product eligibility to expand for an inherent medical purpose.
How to take action
This again highlights the need for a new definition of prevention under Internal Revenue Code 213(d), in favor of these types of preventive items people need to prevent disease and maintain their good health. Insect-borne illnesses are a public health threat in many parts of the U.S., and FSA/HSA users should be able to use their tax-free healthcare funds to cover the cost of this essential health and wellness product.
Lend your voice to this pivotal issue by contacting your member of Congress today to support this expansion of FSA and HSA eligibility to include insect repellent.