|
|
|
Drugs Imported From Outside the U.S. Although some states and jurisdictions may allow U.S. residents to import drugs into the United States, you cannot include the cost of a prescribed drug brought in (or ordered/shipped) from another country as an eligible medical expense to be reimbursed through a Health Flexible Spending Account (FSA). That is because it is not currently legal for individuals to import drugs. Imported drugs violate the Food and Drug Act – which is a federal law. And, when a drug is brought into the U.S. illegally, it cannot be reimbursed from a health FSA. Reports are that President Bush is unlikely to legalize imported medicines because of the health and safety concerns of U.S. citizens. What if the participant becomes ill overseas? Then it’s OK to reimburse their medical and prescription drugs costs if the drug is legal in both the other country and the United States, and the drug was purchased and consumed in another country. The latest IRS Publication 502 "Medical and Dental Expenses" supports this decision in their laundry list of expenses that may and may not be included in determining deductibility. "In general, you cannot include in your medical expenses the cost of a prescribed drug brought in (or ordered/shipped) from another country, because you can only include the cost of a drug that was imported legally." How can a plan administrator be certain that receipts do not include imported drugs? Certification by the employee should be enough in order for the plan administrator to have a level of comfort that a drug was obtained legally.
Click here to read an IRS letter on this subject.
|
|
