Payment Types

There are two types of medical expenses that can be reimbursed by the HCSP: monthly insurance premiums and all other qualified healthcare-related expenses.

Monthly insurance premiums

  • Refers to medical, dental, long-term care insurance, and Medicare Parts B, C, & D.

  • Must be premiums paid with after-tax dollars (pre-tax premiums are not reimbursable).

  • May elect to be reimbursed automatically each month, meaning you do not have to complete and submit a form or provide documentation each time you want to be reimbursed.

  • Long-Term Care (LTC) premiums: Publication 502 limits the annual LTC premium reimbursement amount. The maximum annual limit is determined by the age of the covered person. Please refer to Publication 502 for more information.

Other healthcare-related expenses

  • Refers to the expenses that are incurred time-to-time including co-pays, deductibles, eye glasses, hearing aids, etc. See Eligible Medical Expenses.

  • Your accumulated expenses must equal $75 or more before you submit a reimbursement request to MSRS.

  • The maximum annual reimbursement is $31,000 for 2018 and $33,000 for 2019. This limit does not include medical, dental or long-term care insurance premiums. 


What else should I know?

  • Medical expenses paid by an insurance company or other source (such as another tax-preferred medical savings plan) cannot be reimbursed. This is true whether the payments were made directly to you  or to the provider of the medical services.

  • You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the distribution from your HCSP.

  • Reimbursements are paid pro-rata.