Which of these options can an individual use their medical flexible spending account to pay for?

• A. Cosmetic surgery
• B. Prescription drugs
• C. Gym memberships
• D. Life insurance premiums

Answer: (B)

Medical FSAs are designed to cover expenses that diagnose, treat, or prevent a health condition. Prescription drugs fall into this category because they are prescribed to treat or manage a medical issue, so they are eligible for reimbursement from an FSA.

Cosmetic surgery is generally not eligible because it is typically elective and aimed at improving appearance rather than treating a medical condition. A gym membership isn’t considered a medical expense since it’s about wellness or fitness rather than addressing a diagnosed illness or treatment, and life insurance premiums aren’t medical expenses because they’re for financial protection rather than medical care. If in doubt, check the plan’s list of eligible expenses, but the standard expectation is that prescription drugs are reimbursable.