Ask Penny: Can I pay for transportation expenses with my FSA or HSA?

November 25, 2019

You likely have a primary care physician and hospital relatively close by, but there may be times when you need to travel outside your local area to see a specialist for diagnosis and/or treatment. Medically related travel expenses can add up quickly, and your healthcare FSA or HSA can be used for many of them. (Transportation expenses to receive medical care are not eligible with a dependent care flexible spending account (DCFSA), or a limited care flexible spending account (LCFSA).

What's eligible?

For your travel to be considered an eligible expense, it must be directly related to receiving medical care. If you drive an hour to visit a specialist, the associated travel expenses would be eligible. If you go on vacation and needed to visit urgent care while you were away, however, these travel expenses would not be eligible.

You can also request reimbursement for travel expenses when seeking medical care for a dependent. If a child or spouse needs you to take them to an appointment or accompany them on public transportation, you can submit a claim for these costs as well.

Eligible travel expenses include:

  • Public transportation - Train, bus, taxi, metro, plane, and ferry fares are also eligible expenses, provided medical treatment is the primary purpose for the trip.
  • Rental car - If you don't have your own vehicle or need one to get around in a city that you've traveled to for medical care, you can submit a claim for rental car costs.
  • Fuel - Gas costs for travel to and from a medical care facility are eligible for reimbursement, however you'll need to keep a mileage log and provide receipts for your gas purchase when you submit a claim.
  • Ambulance fees - If you need an ambulance, it’s likely medically necessary and the costs will be eligible.
  • Parking fees – You can use your FSA/HSA to pay for parking at a hospital, doctor's office, or a nearby parking garage while receiving treatment. You cannot claim parking costs if you stop for personal reasons (e.g., a meal or shopping) on your way to or from your appointment.
  • Tolls - You can claim the cost of tolls only if the necessary route to get to your appointment is a toll road. Tolls incurred for anything other than travel to and from your medical appointment are not eligible.

For parking fees and tolls, your FSA/HSA claim must be accompanied by receipts showing the provider, the date of service, and the amount of the expense. Actual mileage incurred must be indicated on your claim form (number of miles traveled times the allowable rate per mile, which is currently 20 cents).

Long-distance travel for medical care may require an overnight stay. If you're staying at a hospital, you can claim this cost, along with meals purchased there. The cost of staying at a hotel near the hospital may also be eligible if the lodging isn't considered a luxury. You may need a letter from a qualified medical professional explaining why these expenses are medically relevant in order to claim reimbursement.  

What’s not eligible?

Some travel expenses for medical travel aren’t eligible for reimbursement including:

  • Auto insurance
  • Travel to or from work
  • Maintenance and repair costs
  • Traffic or parking tickets
  • Vehicle depreciation
  • Personal travel expenses

As with any eligible expense, you'll need documentation for reimbursement. With travel expenses, you'll likely need more than just your receipts to provide proof that the travel was medically necessary (e.g., a bill or doctor's letter proving that you did receive medical care while on the trip). Feel free to call Chard Snyder to speak with a live customer service representative before traveling to determine what types of documentation you'll need for qualified FSA/HSA expenses.