Q: I just purchased an amazing smart pill dispenser to keep my medications straight. It’s called a Hero Dispenser. It holds up to 90-day supply of 10 medications. It even comes with a subscription so my daughter can see on her app if I’ve missed my medication. I’m so excited about the technology, but it would be even better if it were an eligible expense for my Flexible Spending Account?
A: You’re the fifth person to ask that same question this month. It must be amazing! While the IRS has not updated their list of eligible items to include this type of pill dispenser, we have decided to allow the purchase as an eligible expense because we (and assume the IRS eventually will) consider it a medical device (which is eligible). Another IRS eligibility test is to make sure It’s not a dual-purpose item that could be used for pleasure, and it’s not. Some of these products require an on-going subscription service for the app to work. If that is the case with yours, you’ll need to submit claims monthly, even if you pay for it on an annual basis. IRS rules, not ours. FSAs require that the date of “service” fall within the plan year and if the subscription is cancelled then you may be over-reimbursed. Technology is awesome!