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United States: Reproductive Healthcare Issues For Employers Series, Part I: May Abortions Be Reimbursed On A Tax-Free Basis From A Health Flexible Spending Account, A Health Reimbursement Arrangement, Or A Health Spending Account?
Dickinson Wright’s All Things HR Blog is beginning a multi-part series on issues and questions faced by employers in response to the June 24, 2022, U.S. Supreme Court ruling in Dobbs v. Jackson Women’s Health Organization overruling the constitutionally protected right to an abortion and giving each state the right to ban or regulate access to abortions. These posts are intended to be informative summaries to bring human resources personnel and employers up to speed in this rapidly-changing landscape.
Part I of our series addresses whether expenses relating to abortion may be reimbursed from a health flexible spending account (“FSA”), health reimbursement arrangement (“HRA”) and/or a health spending account (“HSA”). Overview of FSAs, HRAs, and HSAs
A health FSA , which is typically funded by employee pre-tax contributions, may reimburse any medical expense as defined in Section 213(d) of the Internal Revenue Code of 1986, as amended (the “Code”). Prop. Reg. §1.125-5(k)(1). Reimbursable expenses may be limited by the plan’s terms, so employers should review their plans to determine if there are any plan-based restrictions or limitations on the types of medical expenses that may be reimbursed from the FSA. In particular, the scope of reimbursable expenses should be reviewed […]