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IRS Allows for Reimbursement of PPE from Health FSAs, HRAs and HSAs

On Friday March 26, 2021 the IRS announced that personal protective equipment (PPE) that is purchased for the primary purpose of preventing the spread of COVID-19 is now treated as an eligible medical expense under Section 213(d) of the IRS code. PPE includes masks, hand sanitizer and sanitizing wipes. These purchases can now be reimbursed from a Health Flexible Spending Account (Health FSA) and Health Savings Account (HSA). They can also be reimbursed from a Health Reimbursement Account (HRA) that allows for the reimbursement of all Section 213(d) expenses. The change goes into effect retroactively to January 1, 2020.

For Health FSA, HSA and HRA plans that allow for Section 213(d) expenses to be reimbursed, there is no action that needs to be taken. PPE will automatically be eligible for reimbursement based on this pronouncement.

We believe this change will be well received by users of these types of reimbursement accounts. Members can submit their claims now in order to be reimbursed for previous purchases.

We are actively working with our debit card vendor to have these new items automatically verified when using the LBS Health Spending Card.

Please contact your LBS relationship manager or account administrator should you have any questions.