Are Depends FSA Eligible? How to Get Reimbursed

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax money from their paycheck to pay for qualified medical expenses. This tax-advantaged account can help reduce the financial burden of healthcare costs throughout the year. Many common healthcare items and services are eligible for FSA reimbursement, including certain over-the-counter products, but some expenses require specific conditions to be met for eligibility. Incontinence products, such as those from brands like Depends, can be FSA eligible under particular circumstances.

Medical Necessity Requirement

For products like incontinence supplies to be eligible for FSA reimbursement, they typically fall under the category of “dual-purpose” items. To differentiate their medical use and meet Internal Revenue Service (IRS) guidelines, a Letter of Medical Necessity (LMN) is often required. The IRS defines qualified medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body.

An LMN serves as certification from a licensed healthcare provider that a product or service is medically necessary to treat a specific health condition. This document helps ensure the purchase is for a legitimate medical reason. The LMN must be provided by a physician or another medical practitioner, such as a nurse practitioner or physician assistant.

To be valid, the LMN needs to include several specific pieces of information. It must clearly state the diagnosed medical condition that necessitates the use of the product. The letter should then describe the specific product, such as “incontinence products” or “adult disposable briefs,” and outline the duration for which the product is needed, which could be a specific period or indicate a chronic condition requiring ongoing use. Finally, the LMN must be signed and dated by the prescribing healthcare provider.

Specific Eligible Products

When medical necessity is properly established through an LMN, various types of incontinence products can become eligible for FSA reimbursement. These products are designed to manage urinary or bowel control issues, which are considered medical conditions. Common examples include adult diapers, protective underwear, and absorbent pads.

Items like bed protectors and underpads, which are used to manage incontinence, may also qualify for reimbursement. Conversely, general hygiene products or cosmetic items that are not directly intended for the management or treatment of a medical condition are typically not eligible, even with an LMN.

Submitting Your Claim for Reimbursement

Once you have purchased the eligible incontinence products and secured a valid Letter of Medical Necessity, the next step is to submit your claim for reimbursement from your FSA. You will need itemized receipts for your purchases, which should clearly show the date of purchase, the description of the items bought, and the amount paid.

The LMN you obtained from your healthcare provider is another document that must accompany your claim. Most FSA administrators offer various methods for submitting claims, including online portals, mobile applications, fax, or mail.

After submitting your claim with all the required documentation, the FSA administrator will review it for compliance with IRS regulations. Processing times can vary, but many claims are processed within a few business days to a week. Upon approval, the reimbursement is typically issued either through direct deposit to your bank account or via a check. In some instances, the administrator may request additional information if the initial submission is incomplete or unclear.