Cafeteria Plan Training Excerpts
Expenses Not Eligible For Reimbursement
Health Care Expenses
The following are a few examples of health care expenses that cannot be included as medical expenses for reimbursement:
- Babysitting and child care
- Cosmetic procedures, for improving general appearance
- Dancing lessons, even if a doctor recommends them
- Diaper service
- Funeral expenses
- Health club dues
- Household help
- Illegal operations and treatments
- Long-term care insurance
- Maternity clothes
- Vitamins for general good health
- Weight loss program unless prescribed to treat an underlying health condition
As with Premium Only Plans, employees may not use HFSA funds to pay the health care plan premiums of their spouse's employer's group health plan.
Dependent care expenses, group health care premiums, life insurance, individual health care policies, disability insurance, and other expenses that are not for medical care also may not be reimbursed from an HFSA.
Dependent Care Assistance Programs
The following payments made for dependent care are not reimbursable under a Dependent Care Assistance Program (DCAP) offered through a Cafeteria Plan:
- Payments made to an individual of any age who is a dependent of the employee
- Payments made to a child of the employee who is not a dependent of the employee, but who is under the age of 19 as of the end of the calendar year
- Household services rendered while providing care such as painting the living room in the course of providing day care services for the employee's child
- Tuition for kindergarten and up (because such tuition is considered an educational expense, not a dependent care expense)
- Cost of overnight camps
- Babysitting for social events
An employee also may not use DCAP funds to pay for any other benefit, including an HFSA, life insurance, group health care premiums, individual health care policies, or disability insurance.
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