Good afternoon the IRS has issued guidance (Announcement 2021-7) that indicates personal protective equipment (PPE) that prevents the spread of COVID-19 is eligible as a medical expense under IRC Section 213(d). The guidance confirms that PPE expenses can now be reimbursed through a HFSA, HRA, HSA and an Archer MSA.
PPE includes the following:
• Masks
• Hand sanitizer
• Sanitizing wipes
• Any other equipment for the primary purpose of preventing the spread of COVID-19
Effective Date and Plan Amendments
The effective date of this provision is effective January 1, 2020 so any PPE expenses incurred on or after January 1, 2020 are eligible for reimbursement. If employers wish to implement this provision, amendments to the cafeteria plan (or group health plan) must be adopted no later than the last day of the first calendar year beginning after the end of the plan year in which the amendment is effective. For calendar year cafeteria plans who implement this for 2021, the amendment should be signed no later than December 31, 2022.
