Health Care Pre-Tax Expense Account

Eligible Expenses

You may use the health care pre-tax expense account to help pay for expenses for yourself, spouse, or dependents. Generally, the health care pre-tax expense account may be used for expenses that the Internal Revenue Service would consider deductible for income tax purposes.

Additionally, if you're enrolled in a health care pre-tax expense account and covered under Penn's Caremark prescription drug plan, your prescription claims are automatically submitted to ADP FSA Services. Click here for more information. You can also use your ExtraCare Health Card to receive 20% savings on CVS/pharmacy brand items that are health-related and eligible for reimbursement under the Health Care Pre-Tax Expense Account. For more information on the ExtraCare Health Card, click here.

Included are:

Medical and dental deductibles and co-payments.
Over-the-counter drugs. Click here for more information.
Virtually all vision expenses (including eyeglasses, contact lenses, and office visits) as well as the cost of a guide dog and special education devices for the visually impaired, such as a special typewriter.
Confinement to a facility primarily for screening tests, physical therapy, or hydrotherapy.
General physical exams.
Cosmetic surgery to improve a deformity caused by a congenital abnormality, disease, or trauma.
Chiropractic treatments not covered by your insurance plan or HMO.
Physical therapy not covered by your insurance plan or HMO.
Services for chromosome or fertility studies.
Treatment (other than surgery, which is covered by the medical plan) of corns, bunions, calluses, foot structural disorders, etc.
Immunization expenses not covered by your insurance plan.
Well-baby care not covered by your insurance plan.
Bandages, support hose, or other pressure garments.
Charges in excess of the usual and customary rate for covered expenses.
Acupuncture for pain relief as performed by a licensed practitioner.
Syringes, needles, and injections.
Vitamins and mineral supplements prescribed for treatment of illness.
Transportation expenses to receive medical care, including fares for public transportation and actual out-of-pocket car expenses, such as gas and oil. In lieu of out-of-pocket expenses, a standard mileage rate of $ .12 per mile may be used.
Amounts not paid by your dental plan, including orthodontia.
Hearing expenses including hearing aids, special instructions or training for the hearing impaired (such as lip reading), the cost of acquiring and training a dog, and special telephone and audio display equipment for the hearing impaired.
Individual psychiatric or psychological counseling.
Miscellaneous expenses, including birth control pills, installation and monthly rental charges for fluoride treatment to home water when recommended by a dentist, a stop-smoking or weight loss program prescribed by a physician for curing a specific ailment, and hypnosis for treatment of an illness.
Halfway house care—to help individuals adjust from life in a mental hospital to community living.
Tutoring by a licensed school or therapist for a child with a severe learning disability, and special schooling for the mentally impaired or physically disabled person.
Lifetime care—payment to a private institution for lifetime care, treatment, or training of a mentally impaired or physically disabled patient.
Medical information plan—fees paid to a plan maintaining an individual's medical information by computer.
Special car controls for the physically disabled.
Reimbursement may also be made, at least in part, for certain capital expenditures which are primarily made for health care reasons. For example, an air conditioner installed in the home for a person with severe allergies may qualify for partial reimbursement. Another example might be the installation of an exercise swimming pool to aid in the recovery of a stroke victim. Special documentation is required.

Exclusions

Here are some examples of expenses that are not eligible under the health care pre-tax expense account:

Expenses incurred by a domestic partner or the dependent children of a domestic partner unless such individual's are the employee's tax dependents.
Marriage or family counseling.
The salary expense of a licensed practical nurse (LPN) incurred in connection with the care of a normal and healthy newborn (even though such may be required due to the death of the mother in childbirth).
Funeral and burial expenses.
Household and domestic help (even though recommended by a qualified physician due to an employee's or dependent's inability to perform physical housework).
Custodial care in an institution.
Costs for sending a problem child to a special school, even though the child may benefit from the course of study and disciplinary methods.
Health club dues, YMCA dues, steam bath, etc.
Social activities, such as dance lessons or classes (even though recommended by a qualified physician for general health improvement).
Membership fees or costs associated with weight-loss or stop-smoking programs for general health and well-being purposes.
Maternity clothes, diaper service, etc.
Cosmetics, toiletries, toothpastes, etc.
Vitamins taken for general health purposes.
The segment of automobile insurance premiums providing medical coverage for persons injured through an accident involving an employee's car.
The segment of life insurance premiums paid for repayment for loss of earnings or for accidental loss of life, limb, sight, etc.
Vacation or travel taken for general health purposes, a change in environment, improvement of morale, etc., or taken to relieve physical or mental discomfort not related to a particular disease or physical deformity.
Transportation expenses to and from work, even though a physical condition may require special means of transportation.
Any after-tax premiums paid for health, dental, vision, prescription drug, or contact lens insurance coverage incurred by you or your dependents. This includes premiums for private insurance (not provided by an employer) and for medical care included in the tuition fee of a college or university.
Elective cosmetic surgery, face lifts, facial hair removal by electrolysis, liposuction.
Cosmetic dental work.
Extended service/warranty plans.