Section 213 Medical Expenses

[Guest GeoffreyMann]

Does anyone know the definition of a drug or biological under 213? Also, where is it defined?

[GBurns]

Look in IRS Publication 502.

What is the relevance of a definition of drug or biological anyhow?

[Guest GeoffreyMann]

502 doesn't get into that sort of detail.

Under 213, a prescribed drug is a drug or biological that requires a prescription for its use by an individual. If it's not a drug or biological, it might be food or something else entirely, and subject to a different analysis as to whether it's eligible under a HFSA.

[GBurns]

For purposes of an FSA section 213 only provides the definition of what comprises a medical expense, it does not provide a list of expenses etc.

A medical expense under 213 is an expense whose primary purpose is the diagnosis, cure, treatment, mitigation etc. etc.

Section 213 does not, per se, dictate or provide any "analysis" of what is reimburseable under the HFSA.

Whether the item used is a drug or biological is irrelevant. What is relevant is what it is used for.

I suggest that since you are not able to follow what is set out in Pub. 502 or in the Proposed Treas. Regs, that you look up IRS Information Letters 2000-0410 re Treatment by Christian Scientist and 2001-0102 re 213 Expenses. Unfortunately, these are PDF files and so I cannot attach them to this response.

These Information Letters might be obtainable on the EBIA website www.ebia.com or if you give me an email address I will forward them to you.