HomeHome < Employees < Health and Welfare Benefits < Flexible Spending Accounts < HCRA Eligible/Ineligible Expenses

Generally expenses must be incurred during the Health Care Reimbursement Account plan year: January 1 through December 31. However, IRS rules allow a grace period from Jan 1 - March 15 of the following year to use any remaining funds. You incur expenses when the care is provided rather than when you are billed or when you pay for the care.

In general, eligible expenses are any tax-deductible health care expenses that you, your legal spouse or anyone you claim as a dependent on your federal income tax return incurs and that are not paid by insurance. Some examples of eligible expenses are:

  • Copayments, coinsurance, and deductibles
  • Crutches
  • Dental care
  • Diabetic supplies
  • Eye exams, glasses, and contact lenses
  • Orthodontia
  • Physical exams
  • Prescription drugs
  • Well baby and well child care
  • Certain over-the-counter (OTC) drugs

Expenses that do not meet the requirement of the program include:

  • Insurance premiums
  • Cosmetic Services
  • Expenses you claim on your income tax return
  • Expenses that are not tax-deductible
  • Expenses reimbursed by other sources, such as insurance plans
  • Fees for exercise or health clubs, unless medically necessary
  • Long-term care premiums
  • Weight loss programs that are not medically necessary

If you enroll midyear, expenses incurred before your effective date are not eligible.

Expenses incurred after your participation ends are not eligible.

For more information about eligible expenses, see the SHPS website.

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