HSA dollars may be used for qualified medical expenses incurred by the account holder and his or her spouse and dependents. Qualified medical expenses are expenses for medical care and are outlined within IRS Section 213(d). In summary the IRS Section 213(d) states that "the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.

You can receive tax-free reimbursement for qualified health expenses as defined by Section 213(d) of the Tax Code. A list of these expenses is available on the IRS Web site, www.irs.gov. HSA distributions used for any purpose other than the qualified medical expenses listed will be taxable, and appropriate tax rules will apply.

You must complete a request for reimbursement form available at www.pennwestern.com and submit it to Penn Western Benefits along with copies of bills, receipts, explanation of benefits from your health care plan, etc. Documentation must include date of service, type of service, and amount of charges. Copies of cancelled checks, credit card receipts, or balance forward statements are not adequate proof of claim. You may mail, fax, or e-mail your request to flex@pennwestern.com.

Amounts paid to a daycare provider either in or out of the home are eligible, as long as the provider is not a dependent or relative under the age of 19. Pre-school tuition is reimbursable, but tuition and expenses from grade K-12 schooling are not.

The HCSAccount may be used to reimburse health care expenses for you, your spouse and anyone who is claimed as a dependent on your federal tax return.

Cities and counties are eligible to apply for reimbursement of direct costs of spays & neuters of cats and dogs owned by low-income persons. The Program cannot provide reimbursement to individuals or private organizations such as humane societies or SPCAs.

Your HSA can be used to pay for most qualified expenses as defined by IRS Code 213 (d). These expenses include, but are not limited to: medical plan deductibles, dental care, contact lenses, hearing aids, braces, diagnostic services not covered by your plan, Lasik surgery, prescriptions, over-the counter drugs and other medical expenses. For a complete list of IRS allowable expenses, you can request a copy of IRS Publication 502 by calling 1-800-829-3676 or visit the IRS website at www.irs.

Medical expenses that are not covered by health insurance that are incurred by the plan holder, their spouse or dependents and are approved Section 125 expenses can be reimbursed.

Money withdrawn from an HSA account to reimburse non-eligible medical expenses is taxable income to the account holder and is subject to a 10% tax penalty, unless you are over age 65, disabled, or upon death of the account holder.

According to the IRS, health care expenses for a domestic partner cannot be reimbursed through a HCSAccount unless the domestic partner qualifies as a dependent under the Internal Revenue Code.

Day care expenses are eligible whether provided by an individual or by an established day care center. If the provider is a day care center which regularly provides care for more than 6 people, the center must comply with state and local laws and regulations. The claim will be paid up to the amount available in the account. The participant will be reimbursed for the rest of the claim once the money is deposited in the account.

Medical expenses that are not reimbursed by your medical insurance such as co-pays, deductibles and coinsurance. Also, if your medical plan does not cover vision exams or hardware, chiropractic care, or similar treatments, these may be eligible for reimbursement under the Section 125 plan.

Only expenses for your workplace parking and mass transit are eligible on a pre-tax basis. Commuting expenses you cannot claim under the program include but are not limited to the following examples:

To be eligible, employees must be covered by a qualified high-deductible health plan and may not be covered by other health insurance. In addition, employees may not be enrolled in Medicare or be claimed as a dependent on someone else's tax return. However, employees are still eligible if they have insurance for a specified illness or disease or accident, disability, dental care, vision care, or long-term care insurance.

present, qualified medical expenses include the following, but only to the extent these expenses are not covered by insurance or otherwise:

Medical expenses (including health insurance premiums) incurred prior to your enrollment in an HRA are not eligible for reimbursement. Only those expenses incurred after you establish a plan can be included. BASE® allows reimbursement expenses to begin on the first day of the month of your enrollment. For example, if you enroll in the BASE® 105 HRA on June 15, 2006, then only your expenses established on or after June 1, 2006, are eligible for reimbursement.