Yes, genetic testing is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when it is ordered by a healthcare provider and used to diagnose or manage a medical condition.
Why Is Genetic Testing FSA/HSA Eligible?
Genetic testing can help identify inherited conditions, evaluate disease risk, and guide medical decisions based on a patient’s genetic profile. When performed for a medically necessary purpose—such as diagnosing a condition, identifying treatment options, or informing pregnancy care—genetic testing qualifies as an eligible expense under IRS Code Section 213(d).
According to IRS Publication 502, diagnostic tests that assist in the treatment or prevention of disease are reimbursable with FSA or HSA funds.
FSA- and HSA-eligible genetic testing may include:
Tests ordered by a physician to diagnose inherited disorders (e.g., BRCA1/BRCA2 for breast cancer risk)
Carrier screening for inherited genetic conditions during pregnancy or family planning
Pharmacogenetic testing to predict medication response
Whole exome or genome sequencing when used for clinical decision-making
- Genetic counseling when tied to a medically necessary test
What’s Not Covered?
The following are not eligible:
At-home DNA or ancestry tests for entertainment or non-medical interest
Nutritional, lifestyle, or fitness-based genetic tests not used for diagnosis or treatment
Genetic testing purchased without provider oversight or medical necessity
Add-on reports or interpretations not medically necessary
To qualify, the test must be recommended or ordered by a licensed healthcare provider and used for a specific medical purpose.
How to Use Your FSA or HSA for Genetic Testing
You can use your FSA or HSA card to pay for eligible genetic testing conducted through clinics, hospitals, or approved at-home services. If you pay out of pocket:
Request an itemized invoice showing the test name, provider, and date of service
Keep documentation from your healthcare provider showing the medical need
Submit both to your FSA or HSA administrator for reimbursement, if required
For more information, refer to IRS Publication 502.
