Yes, lab fees are fully eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when incurred for diagnostic or medically necessary testing.
Why Are Lab Fees FSA/HSA Eligible?
Lab fees are charges for diagnostic testing used to evaluate, monitor, or detect health conditions. These tests are considered an essential part of medical care and qualify as eligible expenses under IRS Code Section 213(d).
According to IRS Publication 502, amounts paid for laboratory services used in diagnosing or treating a medical condition are eligible for reimbursement using FSA or HSA funds.
FSA- and HSA-eligible lab fees may include:
Blood tests (e.g., complete blood count, cholesterol, blood glucose)
Urinalysis and stool testing
COVID-19, flu, or RSV testing
Hormone testing
Pap smears and STI/STD testing
Thyroid panels and autoimmune screens
Genetic and allergy testing (when medically necessary)
Lab services related to procedures or surgeries
- Lab work ordered during routine preventive exams
What’s Not Covered?
The following are not eligible:
Lab tests purchased for general wellness or curiosity without medical direction
Tests ordered for employment, insurance, or legal purposes
Ancestry, paternity, or lifestyle DNA testing
Duplicate testing or repeat labs not part of an active treatment plan
At-home test kits not medically necessary or unsupported by a provider
To qualify, the lab service must be ordered by a licensed healthcare provider and used to diagnose, monitor, or treat a specific medical concern.
How to Use Your FSA or HSA for Lab Fees
You can use your FSA or HSA card to pay for qualifying lab services at clinics, diagnostic labs, or hospitals. If you pay out of pocket:
Request an itemized receipt or invoice showing the type of test performed and date
Keep documentation from your provider, especially if submitting for reimbursement
Submit all necessary paperwork through your FSA or HSA administrator if required
For more information, refer to IRS Publication 502.
