Aon Members Only
This list has been compiled for the convenience of our clients and participants and is designed to provide a general overview of expenses
that may be eligible under section 213(d) of the Internal Revenue Code Publication 502. Members should review their own employersponsored benefit plan descriptions and enrollment materials for specific information or to consult with their employer and/or personal tax
advisor as necessary.
Eligible medical care expenses, as defined by IRS Publication 502, include amounts paid for the diagnosis, cure, mitigation, treatment or
prevention of disease, and for treatments affecting any part or function of the body. The expenses must be primarily to alleviate or prevent a
physical or mental defect or illness. Expenses for solely cosmetic reasons generally are not expenses for medical care and may not be
eligible. Expenses that are merely beneficial to one’s general health are not generally considered qualified expenses for medical care. In
some cases, you may be asked to provide a letter of medical necessity from your attending physician to substantiate your claim.
Items generally considered Eligible from IRS Publication 502
Acupuncture
Lice Treatment (see OTC)
Allergy treatments
Lodging expenses (not provided in a hospital or similar institution) not to
exceed $50 per night per individual while away from home if the lodging is
primarily for and essential to medical care provided by a doctor
Alternative healers, professional fees of
Long-term care services
Ambulance service (also see Transportation)
Mastectomy-related special bras (the cost over & above the cost of a
normal bra)
Amounts over usual and customary limits
Meals (only as part of inpatient hospital care)
Anesthesiologist
Medical conference admission and transportation to/from (if concerns
chronic medical condition of you, spouse or child)
Antacids (see OTC)
Medical equipment (crutches, wheelchairs, walkers)
Artificial limbs
Medical monitoring and testing devices
Artificial teeth/dentures
Medical records charges
Asthma
Medical services provided by physicians, surgeons, specialists or other
medical practitioners
Autoette (wheelchair)
Medical Supplies (bandages, band-aids, gauze pads, thermometers,
hot/cold packs, heating pads, nasal (breathe-right) strips, etc.)
1
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.
Aon Members Only
Battery-powered toothbrush (if medically necessary and prescribed by physician)
Medic-alert bracelet
Blood pressure monitor kits
Mentally handicapped, special home for person adjusting from life in
mental institution to community living
Body scans for diagnostic purposes (also see Health Screening)
Nursing services for care of a specific medical ailment
Bone density testing (also see Health Screening)
Nutritionist’s professional expenses (if treating a specific medical
condition; not for weight loss for general health)
Braces, orthodontic services
Obstetrical and gynecological procedures
Braille books and magazines in excess of cost of regular editions
Occlusal guards to prevent teeth grinding
Childbirth expenses (physician, midwife)
Occupational therapy
Chiropractors and osteopaths
Optometrist or ophthalmologist fees
Cholesterol testing (also see Health Screening)
Oral surgery
Christian Science Practitioner fees
Orthodontia
Coinsurance (only the percentage of charges not paid by your health care plan)
Orthopedic devices
Cold Relief (see OTC)
Orthopedic shoes (to the extent the cost exceeds that of normal shoes)
Cold Sore (see OTC)
Over-the-counter Drugs/Medicines (allergy medicines, antacids, antidiarrhea, anti-fungal ointments and creams, antiseptic ointments and
creams, cold medicines including sore throat sprays, lozenges, nasal
sprays, cough syrups, cough drops, vapor rubs, eye drops, first-aid and
antibiotic creams and ointments, gas relief medicines, hemorrhoid
ointments and creams, laxatives, lice treatments, motion-sickness pills,
pain relievers including arthritis pain, head/back pain and menstrual pain,
sleep aids, stop smoking gums/patches, yeast infection products; does
not include cosmetic items, vitamins, herbal and dietary supplements or
items for general good health)
Contact lenses and cleaning solutions
Ovulation and pregnancy tests
Contraceptives (birth control pills, condoms, spermicides, Norplant)
Oxygen equipment and oxygen used to relieve breathing problems that
result from a medical condition
Corrective eye surgery including radial keratotomy (cataract, LASIK, corneal rings,
etc.)
Pain Relievers (does not include vitamins or herbal supplements)
2
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.
Aon Members Only
Cosmetic surgery/procedure that treats a deformity, caused by an accident or
trauma, disease, or an abnormality at birth
Patterning exercises
Cost of note-taker for a deaf child in school
Physical exams, routine physicals
Counseling (for treatment of specific medical condition)
Physical therapy
Crutches
Physicians fees
Deductibles and co-payments for health care plans (e.g., medical, dental, vision)
Pregnancy test, over-the-counter
Dental treatment (includes exams, x-rays, fillings, root canals, gum disease
treatment, crowns, bridges, dentures, implants, orthodontia; does not include
cosmetic treatments such as teeth whitening, dental veneers, bonding, etc.)
Prescription drugs (does not include cosmetic drugs)
Denture supplies
Prescription eyeglasses or prescription sunglasses
Dermatological procedures
Prosthesis
Diabetic supplies including monitoring system, insulin pump, glucose kit, test
strips, lancets
Reading glasses (prescription glasses or over-the-counter glasses)
Diabetic Treatment
Reconstructive surgery following mastectomy
Diagnostic services and tests
Routine/preventive physicals
Diapers (if required due to medical condition)
Schools and education, special (for mentally impaired or physically
disabled person – see IRS Publication 502)
Drug dependency treatments
Services of psychotherapists, psychiatrists, and psychologists
Drugs (prescription drugs, insulin; see Over-the-counter Drugs/Medicines; does
not include cosmetic drugs (e.g., Retin-A, Renova, Propecia, over-the-counter
acne products, etc.)
Shipping, handling, delivery charges, and sales tax for eligible expenses
Dyslexia treatment
Sick-child care facility (for medical care only)
Excess costs of specifically equipping automobile for a disabled person over the
costs of ordinary automobile; device for lifting a disabled person into automobile
Sleep disorder and treatment
Expenses connected with donating an organ
Smoking cessation drugs
Eye and Ear Treatment
Smoking cessation programs
Eye examinations
Social security tax paid with respect to wages of a qualified nurse's
service
3
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.
Aon Members Only
Eyeglasses
Speech therapy
Eyeglasses, prescription (includes prescription sunglasses; also includes overthe-counter reading glasses)
Sterilization and reversed sterilization
Flu shots
Stomach Remedies (see OTC)
Fluoridation device (if medically necessary & prescribed by physician)
Storage fees for embryo or sperm (fees for temporary storage of eggs or
sperm only to extent used for immediate conception in current plan year)
Foot Treatments
Storage fees for umbilical cord blood (fees for temporary storage only to
extent used for medical condition in current plan year)
Genetic testing
Sunglasses (only if medically required due to specific medical condition &
obtained at direction of physician)
Guide dog or other animal for visually or hearing (includes purchase, training, and
care)
Surgery (for legal operations not cosmetic in nature)
Health institute
Taxes charged for medical services and products
Health screening (cholesterol checks, bone density testing, blood pressure
testing, hearing exams)
Telephone consultations with a health care provider
Hearing aids, batteries for operation of hearing aids, hearing aid repairs
Telephone or Television for hearing-impaired persons, special equipment
for
Hemorrhoid Relief (see OTC)
Toothache (see OTC)
Home health care
Topical Products (see OTC)
Hospital services
Transplants (donor expenses, if you pay those expenses)
Household visual alert system for hearing impaired
Transportation expenses primarily for and essential to, medical care
including mileage, bus, taxi, train/plane fares, ambulance services,
parking fees and tolls
Inclinator
Treatment for alcoholism or drug dependency
Incontinence supplies
Vaccinations/Immunizations
Infertility Treatment
Vitamins (only by prescription and only if necessary to treat a specific
medical condition)
Insulin and syringes
Walkers, crutches, canes
4
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.
Aon Members Only
Insurance Premiums if sole purpose is to diagnose, cure, mitigate, treat, or
prevent illness/disease, or for the purpose of affecting any structure or function of
the body or for transportation primarily for and essential to medical care
Wart Treatment (see OTC)
Jock (see OTC)
Weight-loss program (only if medically necessary to treat existing disease
(such as heart disease) and undertaken under physician’s direction).
Weight loss for general health and wellness are NOT eligible. See
Ineligible expenses.
Laboratory fees
Wheelchair or autoette including cost of operating/maintaining
Language training for child with dyslexia or disabled child
Wigs (if purchased upon advice of physician for mental health of patient)
Lead-based paint removal
X-ray
Learning disability caused by mental or physical impairment, or nervous system
disorders (treatment must be recommended by physician – see IRS Publication
502, - Learning Disability)
Yeast Infection (see OTC)
Legal fees directly related to commitment of mentally ill person
Ineligible Health Care Expenses (see IRS publication 502)
Adoption fees
Baby-sitting, childcare or nursing services for a healthy baby
Chairs, recliner
Liposuction or other similar cosmetic treatments
Marriage, family counseling
Massage therapy (unless recommended as medically necessary to treat a
specific injury or illness; does not include therapy for stress or tension
reduction)
Marijuana
Childbirth expenses (Lamaze or childbirth classes, doula services)
Maternity clothes
Completing claim forms, fees for
Controlled substances (marijuana, laetrile, etc.)
Cord blood storage for future use
Cosmetic surgery or procedures; cosmetic prescription drugs such as Retin-A,
Renove, Propecia, etc. and over-the-counter cosmetic drugs/medicines such as
acne products
Mattress
Meals while traveling to obtain medical care
Medical newsletters
Medical savings account
5
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.
Aon Members Only
Ineligible Health Care Expenses (see IRS publication 502), continued
Counseling (marriage, family counseling)
Dancing lessons
Domestic help
Doula services
Ear piercing
Electrolysis or hair removal
"No Show" doctor or dentist visits, charges for
Nursing services for health baby
Nutritional supplements (vitamins, herbal and dietary supplements, natural
medicines, etc.)
Paternity testing
Personal use items (items ordinarily used for personal, living or family
purposes)
Prepayment for services not yet provided
Prescription drug discount programs, fees for
Recliner chair
Safety glasses
Exercise equipment for general health
Storage fees for embryo, sperm or umbilical cord blood, long term
Exercise/Fitness programs for general health
Expenses that have been reimbursed elsewhere, or that may be reimbursable
under any other source
Expenses not incurred during your period of coverage
Facelifts or other similar cosmetic treatments (dermabrasion, chemical peels,
etc.)
Funeral expenses
Hair transplant
Health club membership dues
Herbal supplements (dietary and nutritional supplements, vitamins, natural
medicines, etc.)
Household help
Illegal operations and treatments
Lactation consultant for general instruction
Laetrile
Lamaze/Childbirth classes
Student health fees
Dental veneers or bonding, or teeth whitening for cosmetic reasons
Diaper service
Divorce expenses
Lifetime care fees
Sun screen lotion
Sunglasses, clip on
Surrogate expenses
Swimming lessons
Tanning salons and equipment
Tattoo removal
Teeth bleaching/whitening for cosmetic purposes
Tax Equity and Fiscal Responsibility Act (TEFRA)
Vacuum cleaner for allergies
Varicose veins, treatment of
Vision service agreements or lens replacement insurance
Warranties/service contracts
Weight loss programs for general health or appearance; diet foods for
weight loss
6
Blue Cross and Blue Shield of Illinois does not provide legal or tax advice, and nothing herein should be construed as legal or tax advice. These materials, and any tax-related statements in them, are not intended
or written to be used, and cannot be used or relied on, for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the promotion or marketing of the
transaction(s) or matter(s) addressed by these materials. You may seek advice based on your particular circumstances from an independent tax advisor regarding the tax consequences of specific health insurance
plans or products.