Health Care Reimbursement Account (HCRA) Eligible Expenses
Your contributions to your HCRA may be used to reimburse most health care expenses that qualify as medical deductions under IRS rules. However, health care expenses reimbursed through a HCRA can no longer be claimed as income tax deductions.Insurance premiums (such as your share of the cost for eFunds benefit plans), expenses that can be reimbursed through other sources such as a group health, dental or vision plan, and any expenses that you claim as a deduction on your federal income tax return are not eligible for reimbursement.

Following are several examples of eligible HCRA expenses:

  • Medical and dental deductibles, coinsurance and co-payments
  • Out-of-pocket costs for prescription drugs
  • Charges for services above your plan benefit limits
  • Eye exams, prescription eyeglasses or sunglasses, and contact lenses
  • Hearing care, including hearing aids
  • Dental care, including orthodontia expenses
  • Physical therapy
  • Routine checkups, to the extent that they are not covered by your health care coverage
  • Smoking cessation programs
  • Charges for psychologists, chiropractors, and physical therapy for medical care
  • Wheelchairs
  • Acupuncture
  • Birth control-related expenses
  • Diabetic supplies
  • Physician prescribed smoking cessation programs
  • Any other health care expenses that are eligible for deduction on your federal income tax return
  • Doctor-ordered weight loss programs for treatment of disease (including obesity). However, the cost of special diet foods that may facilitate weight loss but are substitutes for the normal consumption of food to meet nutritional requirements are non-reimburseable expenses. Only special food outside of normal nutritional needs that treats or alleviates the disease and is prescribed by a physician qualifies as a reimburseable expense.
      

Following are several examples of ineligible HCRA expenses:

  •         Health and fitness club memberships
  •         Cosmetic expenses (e.g., hair transplants) or cosmetic surgery
  •         Personal care items and nonprescription drugs
  • Any expenses for which you take a federal tax deduction

This is not a comprehensive listing. A complete list is available in IRS publication #502, Medical/Dental Expenses". Visit http://irs.ustreas.gov or call 1-800-Tax-Form (1-800-829-3676) for a free copy.

The information about benefits included in this enrollment process is only a brief overview, providing highlights of the eFunds welfare benefit plans.  If there are any differences between this overview and the official plan documents, the plan documents will govern. eFunds reserves the right to amend or terminate the welfare benefit plans for any reason and in its sole discretion, and you would be subject to such amendments or termination.  For more information contact the Benefits Department.