Eyeglasses NOT covered under Flex Spending Account - What ??

[AustinEyewear]

Has anyone ever heard of eye glasses not being covered under a Flex Spending Account? We had a patient who's employer says it is not covered and won't release his Flex money for eye glasses?

[B101875]

Does the employer hate the emploee? Are they PL sunglasses? Would not that be covered under Fed Guide Lines?

http://www.wageworks.com/employee/he...nses/fsa.htm#G

[cocoisland58]

Isn't flex money generally held by a third party? Either way the rules apply and it seems both parties are ignorant of the guidelines so printing this list and presenting it along with the receipt should do the trick.

[AustinEyewear]

http://www.irs.gov/pub/irs-pdf/p969.pdf

PDF page 16 indicates qualified expenses for an FSA would be those in Pub 502 http://www.irs.gov/publications/p502/ar02.html

which has eyeglasses listed

[William Walker]

I have run into a few instances where a HSA or FSA card will not work, and upon calling, find that the card company (VISA, MC, etc...) has put in a block to places that sell retail (non-Rx) items. It's their way of making sure employees don't attempt to use their card for plano sunglasses and the like. In those instances, they have all been approved to submit their receipt for reimbursement.

[Sukuraki]

Eyeglasses not covered under Flex Spending Account. it is right

[LENNY]

It is wrong!
Sell them every day under flex spending...

[William Walker]

You know, I wasn't thinking of this being in other states. In the state of FL, glasses are considered a medical device, and thereby aren't taxed. I know that in other states, glasses are. Could each state's classification of eyewear also determine whether or not a FSA can cover it?

[shanbaum]

As you have pointed out, Austin, the relevant federal guidelines are in http://www.irs.gov/pub/irs-pdf/p969.pdf and http://www.irs.gov/pub/irs-pdf/p502.pdf. However, an employer offering an FSA can, in the plan design, restrict reimbursements to a subset of those the government lists as "qualified." That is not true of an HSA.

[MikeAurelius]

You know, I wasn't thinking of this being in other states. In the state of FL, glasses are considered a medical device, and thereby aren't taxed. I know that in other states, glasses are. Could each state's classification of eyewear also determine whether or not a FSA can cover it?

Well, there are taxes and then there are "taxes".

Here in Minnesota, we have to pay the state 2% as a provider tax for all medical devices, medicine, and the like. The funds go to pay for the state Medicaide program. There is no direct sales tax per se, but the state does allow the provider to pass the tax on to the patient.

Sunglasses are taxed at 6.875% and prescription eyewear is taxed at 2%.

[shanbaum]

You know, I wasn't thinking of this being in other states. In the state of FL, glasses are considered a medical device, and thereby aren't taxed. I know that in other states, glasses are. Could each state's classification of eyewear also determine whether or not a FSA can cover it?

Only if an employer's plan specified that, which would be pretty weird. But, possible. State-taxability has no bearing at all on the federal guidelines, which set the outer boundary for qualification.

[Bev Heishman]

The receipt needs to bear the correct vision codes for the lenses and frame and a diagnosis code (refractive error) to be entitled for reimbursement. I work with flex spending accounts and am covered by one.

[shannon]

Just stay away from Montgomery, AL, they tax EVERYTHING here....at a lovely 10%. I've never had any problems with a flex account but I have seen that the rules have been changing for some of what can and cannot be purchased (OTC drugs for some...insane).

[J.P.]

Did you ensure that the patient had a CPT and Diagnose code on their receipt when they filed it? Without the V2020 CPT code and a Diagnose on the frame, the Flex Account Holder can deny it. It's not proving that it's a medical device for a medical purpose

[J.P.]

Just stay away from Montgomery, AL, they tax EVERYTHING here....at a lovely 10%. I've never had any problems with a flex account but I have seen that the rules have been changing for some of what can and cannot be purchased (OTC drugs for some...insane).

In the State of Alabama, any good sold has to be taxed. It's just the rules, in the majority of states, you must charge taxes on goods sold.

OTC Drugs can't be filed because there is no diagnoses for the OTC drug to be taken by a medical professional because OTC drugs are outside the ability of a doctor to prescribe. It's the reason why they are OTC, anyone can take them.