Are Compression Socks FSA Eligible?

A Flexible Spending Account (FSA) allows individuals to pay for healthcare expenses with pre-tax dollars, offering significant savings on out-of-pocket costs like doctor visits and prescription medications. A common question concerns the eligibility of everyday items, such as compression socks, for FSA reimbursement. Understanding the specific criteria is essential to effectively utilize these accounts.

Understanding FSA Eligibility

Flexible Spending Accounts cover “medical care” expenses, as defined by the Internal Revenue Service (IRS). IRS guidelines state medical care includes expenses for the diagnosis, cure, mitigation, treatment, or prevention of disease, and for treatments affecting body structure or function. Costs for equipment, supplies, and diagnostic devices for these purposes are generally included. Expenses must primarily address a physical or mental disability or illness, not just general health or cosmetic reasons.

Many common healthcare costs are eligible, such as doctor visits, prescription drugs, dental treatments, and vision care including eyeglasses and contact lenses. Over-the-counter medications and certain supplies like bandages and blood sugar test kits also qualify without a prescription. While FSAs allow tax-free payment for these expenses, they do not cover health insurance premiums.

Compression Socks and Medical Necessity

Compression socks can be FSA eligible, but only under specific conditions. They are not covered if purchased for general comfort, athletic performance, or minor swelling unrelated to a diagnosed medical condition. The IRS distinguishes between items for general health and those with a clear medical purpose.

To qualify, compression socks must be medically necessary and prescribed by a healthcare provider for a diagnosed condition. Common conditions include deep vein thrombosis (DVT), varicose veins, lymphedema, and post-surgical recovery. Higher compression levels (e.g., 30-40 mmHg or above) are often eligible when used to treat a medical condition. A prescription or a Letter of Medical Necessity (LOMN) from a qualified healthcare provider documents this medical necessity.

Required Documentation for Reimbursement

Before submitting an FSA claim for compression socks, gather specific documentation to prove eligibility. A Letter of Medical Necessity (LOMN) or a prescription from a healthcare provider is essential. This document must include the patient’s name, specific diagnosis, medical reason for the socks, and the healthcare provider’s signature and date. Qualified providers include doctors, physician assistants, or nurse practitioners.

An itemized receipt for the purchase is also required. This receipt must clearly show the date of purchase, vendor’s name, a detailed item description (e.g., “compression socks”), and the amount paid. Credit card receipts or non-itemized cash register receipts are not sufficient. Any specific forms from the FSA administrator must also be completed, incorporating information from both the LOMN and the itemized receipt.

The Reimbursement Process

Once all necessary documentation is gathered, submit the FSA claim for reimbursement. Most FSA administrators offer several submission methods, including online portals, mobile applications, mail, or fax. Online platforms or mobile apps often allow faster processing, as users can upload digital copies or photos of receipts and supporting documents.

After submission, the FSA administrator reviews the claim and documentation to ensure it meets IRS requirements. Processing times vary, but claims are often processed within one to two business days of receipt and verification. Reimbursement is typically issued via direct deposit or by check. Track the claim status through the FSA account portal and keep copies of all submitted documents for personal records.