Foreign Country Expenses

[Guest myvettee]

Can an employee elect to have a surgical procedure (i.e. eye surgery in Canada-cheaper than the states) in a foreign country and claim that expense on their health care spending account? The expense is valid but Outside of the country is the question. Thanks!

[KIP KRAUS]

I guess no one wants to touch this one, btu I haven't been able to find anything in the IRS Code that would dissallow medical claims paid in a foreign country. If it were me, I'd allow it and reimburse the employee in accordance with the exchange rate in effect when the charges are incurred.

Maybe someone else can come up with an IRS interpretation letter on the subject, but I couldn't find anything.

[SLuskin]

I agree with Kip. It is virtually the same as someone on vacation in Europe. They get sick and incur expenses there. Some HMOs will cover some of the expense, and some PPOs will treat as out of network. The actual out of pocket in US dollars shoudl absolutely be permitted.

[Lisa Hand]

An additional comment, before reimbursing make sure the procedure is FDA approved in the US. For example, Intacs (corneal rings) were approved in Canada in 1998 and Europe in 1996, however, were not approved in the U.S. until this last Friday (April 9, 1999).

[Joe Priselac]

I agree that medical expenses incured in a foreign country would be eligible for reimbursement. I would be hesitant to apply FDA standards since acupuncture and Christian Science Practioners are not FDA approved but still eligible expenses. The IRS usually looks to the jurisdiction where the procedure or medication was administered. If you were in Germany and received a drug legal there but not yet approved in the USA, it would be an eligible expense.

[Lisa Hand]

Publication 502 lists acupuncture and Christian Science practitioners as valid expenses and FDA approval is not required because these services are not regulated by the FDA. However, the publication also clearly states that illegal operations or treatments are not eligible "...whether rendered by licensed or unlicensed practioners." That was the reference I was looking at for my earlier comment, since surgical procedures are regulated by the FDA.