Yes, hospital fees are fully eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Are Hospital Fees FSA/HSA Eligible?
Hospital fees are incurred when receiving inpatient or outpatient medical care at a hospital. These may include charges for room and board, surgical procedures, lab testing, nursing care, and other services. Because these costs are directly tied to the diagnosis, treatment, or prevention of a medical condition, they qualify as eligible medical expenses under IRS Code Section 213(d).
According to IRS Publication 502, hospital services and related fees are considered qualified medical expenses, making them reimbursable with FSA or HSA funds.
FSA- and HSA-eligible hospital fees may include:
Inpatient hospital stays (room and board)
Outpatient procedures and surgical center fees
Emergency room and urgent care services
Operating room and recovery room charges
Physician and specialist fees billed through the hospital
Lab tests, X-rays, MRIs, or other diagnostic services
Medications and IVs administered during the hospital stay
Maternity and newborn care
Mental health hospitalization and treatment programs
What’s Not Covered?
The following are not eligible:
Fees for elective or cosmetic procedures not medically necessary
Personal comfort items (e.g., TV rental, private room upgrades without medical justification)
Long-term custodial care or stays in facilities not providing medical treatment
Services already reimbursed by insurance or another party
To qualify, the service must be performed by a licensed healthcare provider and necessary for treating a diagnosed condition.
How to Use Your FSA or HSA for Hospital Fees
You can use your FSA or HSA card at the hospital or through the hospital’s billing department. If you pay out of pocket:
Request an itemized bill or Explanation of Benefits (EOB) from the hospital
Ensure the charges are related to medical care, not non-medical extras
Submit documentation through your FSA or HSA provider if reimbursement is needed
For more details, refer to IRS Publication 502.
