According to a recent press release, the IRS believes that some companies may be misrepresenting the circumstances under which food and wellness expenses can be paid or reimbursed under account-based health spending plans. These entities provide consumers with “letters of medical necessity” (essentially a doctor’s note) to purchase health-related items such as nutritious meal plans, gym memberships, fitness trackers and dietary supplements.

Generally, medical letters must result from face-to-face interactions with the patient, either in-person or through telehealth visits. Thus, acquiring a medical letter by filling out an online questionnaire – as is commonly practiced by companies such as Truemed – is not adequate.

DBS encourages agents and client with questions regarding medical expenses related to food, nutrition, or wellness to visit IRS.gov or contact our Customer Service Representatives at (800) 234-1229 for more information.

Note: Account-based health spending plans that pay for, or reimburse, non-medical expenses are considered voided plans. As a result, all payments made under the plan – even reimbursements for actual medical expenses – are includible in income.