Psychological Testing/Evaluation

[Guest Joe Vasko]

Is psychological testing/evaluation an eligible expenses under an FSA Plan, or does some sort of diagnosis required first. An employee basically told me that they took their daughter in for psychological testing/evaluation without receiving some sort of referral from there primary care physician.

Thanks, Joe

[papogi]

Based on comments made by John Sapienza, Senior Attorney, and Donna Crisalli, Special Counsel, of the IRS Office of the Associate Chief Counsel (Income Tax and Accounting), on May 21, 2002, it would appear this would be reimbursable. They said that "diagnostic procedures themselves qualify as medical care; there doesn't have to be an underlying medical condition. Items such as body scans, pregnancy kits, ovulation monitors, and on-site health fairs that check blood pressure, cholesterol and bone density, are all expenses that would qualify as diagnostic and thus as medical care." Based on that comment, one may conclude that the same principle would carry over to psychological exams. I would caution that these comments were informal, and specifics do not appear in the regs. This is what we have to go on, however.