Health Savings and Flexible Spending Accounts for Radon Mitigation: Fact Sheet

Medical Necessity 

A radon mitigation system is an approved medical necessity to prevent lung cancer if you have elevated radon levels, which pose the risk of causing lung cancer.  

Internal Revenue Code: Section 213(d)(1)(A)

The IRS defines "medical care" as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting a structure or function of the body. A limit has been placed on the value of mitigation for payment by a Health Savings Account or Flexible Spending Account. It states that the medical care improvement cannot exceed 10% of the income.

Dr. Bill Fields, MD, Professor in the School of Health and Wellness, University of Iowa

“If you have a history of radon exposure, which most everyone does, continued exposure increases the risk of lung cancer.  I have been contacted by some individuals who could not find a physician to write a supporting letter.  I suggested they send in the Surgeon General’s (the US physician) guidance that homes should be tested and mitigated as needed and that seemed to work for them.  In Iowa, we have had over 20 situations that I know of to date that we have used this process successfully to pay for radon mitigation.” 

The U.S. Surgeon General Dr. Carmona, MD guidance:

"Indoor radon is the second-leading cause of lung cancer in the United States and breathing it over prolonged periods can present a significant health risk to families all over the county.  It's important to know that this threat is completely preventable. Radon can be detected with a simple test and fixed through well-established venting techniques." 

“If a physician requires radon mitigation in your home due to a medical condition caused or aggravated by an unacceptable level of radon, some expenses may be eligible. However, if the home’s value is increased due to the mitigation, some or all of the expenses may not be reimbursable. Use the Capital Expense Worksheet to determine how much of the expense is eligible. The cost of the test to determine if radon is present in the home is not eligible.” 

Examples of organizations specifically listing “radon mitigation” as allowable expense:

ADP; Paychex; Peak1 Administration; Surency Life and Health; ASI Flex; FSA Benefit Help Solutions; Flexible 
Benefit Service Corporation 

National Radon Defense and its affiliates are not legal counsel, nor offering accounting advice. Please consult with your own counsel to confirm these statements and process.