Eligible medical expenses

The HCSP account is used to reimburse medical expenses that occur after you retire, end Minnesota public employment, or are collecting a disability benefit from a Minnesota pension plan.

An expense is incurred the date service is provided, not the date the bill is paid.

You cannot be reimbursed for medical expenses that were paid by an insurance company or other source, such as another tax-preferred medical savings plan.

Medical expenses that can be reimbursed

Note: The current IRS Publication 502 always supersedes MSRS' documentation regarding reimbursable health-care related expenses. Publication 502 changes periodically.

Medical expense defined (IRS Publication 502)

The costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes.

Dual-use expenses

Dual-use expenses are those that can be used either to treat a medical condition or to promote general health. Some examples of dual-use expenses include fish oil, sunscreen, and glucosamine. For a more complete list of dual-use expenses, please see Eligible Medical Expenses.

If medically necessary, a dual-use expense can be reimbursed. 
The reimbursement request must be accompanied by a prescription or Letter of Medical Necessity signed by a qualified medical practitioner*. The prescription must:

  1. Specify the condition requiring the treatment or expense.

  2. Recommend the purchase of the particular item or service to treat the condition.

  3. Be dated prior to purchasing the dual-use expense.

  4. Be updated by a qualified medical practitioner* on an annual basis to continue to be eligible for reimbursements.

*Qualified medical practitioner includes: medical doctor, chiropractor, physician assistant, ophthalmologist, dentist, nurse practitioner, and osteopathic doctor (OD). Please note: While a naturopathic doctor can be certified by the State of Minnesota to help consumers make informed decisions, federal and Minnesota state governments do not recognize them as having the ability to write prescriptions.