Benesyst FSA Client Alert
IRS Adjusts Rules on Lactation Expenses as Medical Expenses
On February 10, 2011 the IRS issued Announcement 2011 – 14 ruling that breast pumps and supplies that assist lactation are medical care under §213(d) of the Internal Revenue Code because, "like obstetric care, they are for the purpose of affecting a structure or function of the body". Expenses paid for breast pumps and supplies that assist lactation are now FSA eligible expenses.
Impact on your FSA Plan
No plan amendment is needed. This is simply an expanded interpretation of the "medical care" standard that has been part of §213(d) of the Internal Revenue Code for years.
Impact on your FSA Participants
Our systems and our Participant Advocate Team have already been updated. FSA participants can begin to submit claims for breast pumps and supplies that assist lactation immediately.
Please note that the IRS did not make their ruling retroactive, so only lactation expenses incurred on or after February 10, 2011 are eligible for reimbursement, pending further guidance from the IRS.
This document (PDF Download) summarizes current Eligible and Non-Eligible FSA Expenses.