IRS Announces Personal Protective Equipment Purchases Related to COVID-19 Pandemic Are Considered Eligible Medical Expenses under Section § 213(d)

March 26, 2021 – Today the Internal Revenue Service (IRS) issued Announcement 2021-7. This Announcement notified taxpayers that personal protective equipment purchases including face masks, hand sanitizers, and sanitizing wipes that were purchased to prevent the spread of COVID-19, will be considered eligible medical expenses under Section § 213(d) of the Internal Revenue Code and will thus be eligible for reimbursement from health care flexible spending accounts (HCFSAs), certain health reimbursement accounts (HRAs), and health savings accounts (HSAs).

This provision will be retroactive to January 1, 2020.

Please contact your dedicated Account Manager at 800.532.3327 with questions regarding this Announcement.

What you need to know:

• Personal protective equipment including face masks, hand sanitizers, and sanitizing wipes, are now considered eligible for reimbursement from HCFSAs, certain HRAs, and HSAs.
• This provision is retroactive to January 1, 2020.
• Flores has adjusted Health Care FSA claims processing procedures to accommodate this expansion.
• This provision does not apply to Limited Health Care FSAs which continue to be limited to dental, vision, and (optional) post-deductible expenses only.

Thank you for your continued trust and support. Please contact your Dedicated Account Manager at (800) 532-3327 for specific questions regarding the plans we may administer on your behalf.