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Small Business Employee Benefits and HR Blog

What Types of Expenses Are Covered by Defined Contribution Health Plans?

A defined contribution health plan can reimburse any expense considered to be a qualified medical expense by the IRS, including premiums for individual health insurance policies. Note that employers may restrict the list of reimbursable expenses in any way they choose. 

Some common categories of reimbursable items include:

  1. Health Insurance Premiums

  2. Doctor Visits

  3. Dental

  4. Vision

  5. Pharmacy

  6. Hospital

  7. Over the Counter Drugs (Prescription required)

For more information, see IRS Publication 502.

Click here to read more about defined contribution health plans.

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