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What is a "Qualified Medical Expense" anyway?

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The Legal Definition

The Internal Revenue Code defines medical expenses in 26 U.S. Code § 213:
(d) Definitions For purposes of this section—

(1) The term “medical care” means amounts paid—

(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,
(B) for transportation primarily for and essential to medical care referred to in subparagraph (A),
(C) for qualified long-term care services (as defined in section 7702B(c)), or
(D) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B) or for any qualified long-term care insurance contract (as defined in section 7702B(b)).

 The Internal Revenue Service (IRS) establishes guidelines for what types of medical expenses may be reimbursed tax-free through an HRA. These expenses are outlined in IRS Publication 502.

 The following list are examples of IRS qualified medical expenses:

 Acupuncture
Alcoholism treatment
Ambulance services
Annual physical examination
Artificial limb or prosthesis
Birth control pills (by prescription)
Chiropractor
Childbirth/delivery
Convalescent home
(for medical treatment only)
Crutches
Doctor’s fees
Dental treatments
(including x-rays, braces,
dentures, fillings, oral surgery)
Dermatologist
Diagnostic services
Disabled dependent care
Drug addiction therapy
Fertility enhancement
(including in-vitro fertilization)
Guide dog
(or other service animal)
Gynecologist
Hearing aids and batteries
Hospital bills
Insurance premiums**
Laboratory fees
Lactation expenses
Lodging
(away from home for
outpatient care)
Nursing home
Nursing services
Obstetrician
Osteopath
Oxygen
Pregnancy test kit
Podiatrist
Prescription drugs and medicines
(over-the-counter drugs are not
IRS-qualified medical expenses
unless prescribed by a doctor)
Prenatal care & postnatal
treatments
Psychiatrist
Psychologist
Smoking cessation programs
Special education tutoring
Surgery
Telephone or TV equipment to
assist the hearing or vision
impaired
Therapy or counseling
Medical transportation expenses
Transplants
Vaccines
Vasectomy
Vision care
(including eyeglasses,
contact lenses, lasik surgery)
Weight loss programs
(for a specific disease
diagnosed by a physician – such
as obesity, hypertension, or heart
disease)
Wheelchairs
X-rays

 The scope of expenses that could be qualified with a doctor's Statement of Medical Necessity is endless. If in doubt, ask an Enrolled Agent or tax professional.
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