Q&A: Participants: Eligible Expenses
« BackQuestion: Are smoking cessation programs or related products eligible under the Health FSA?
Answer:
Smoking cessation programs and drugs or medicines used to alleviate nicotine addiction are deductible medical expenses under IRC Sec. 213, according to the Internal Revenue Service's holding in Rev. Rul. 99-28, issued in June, 1999.
Relying on reports issued by the Surgeon General, the IRS notes "scientific evidence has thus established that nicotine is addictive and that smoking is detrimental to the health of the smoker."
Thus, both program costs, prescription drugs and over-the-counter remedies - if not reimbursed by insurance - are eligible for reimbursement under a Medical FSA.
Until now, there were conflicting precedents, including a 1979 Revenue Ruling that that an individual who had no specific disease or ailment could not deduct expenses for a smoking cessation program.
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