Are Laxatives an FSA Eligible Expense?

A Flexible Spending Account (FSA) offers a tax-advantaged method for individuals to pay for eligible healthcare expenses. These accounts allow participants to set aside pre-tax money from their paychecks, which can then be used for a variety of medical costs.

General FSA Eligibility

Flexible Spending Accounts cover qualified medical expenses as defined by the Internal Revenue Service (IRS). These expenses generally include costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body.

Prior to 2020, many over-the-counter (OTC) medications required a prescription to be eligible for FSA reimbursement. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in 2020, made OTC medications and drugs, including many personal care items, eligible for FSA reimbursement without a prescription. This permanent change expanded the range of items that can be purchased with FSA funds, providing more flexibility for healthcare spending.

Laxatives and FSA Coverage

Laxatives are an eligible expense for reimbursement through a Flexible Spending Account. This eligibility stems from their purpose in treating a medical condition, specifically constipation, which aligns with the IRS definition of qualified medical expenses. The CARES Act’s provisions mean that most over-the-counter laxatives no longer require a prescription or a Letter of Medical Necessity (LMN) to be FSA eligible.

Various types of laxatives are covered, as they fall under the category of OTC medicines for digestive health. These include bulk-forming laxatives like psyllium husk, stool softeners such as docusate sodium, osmotic laxatives like polyethylene glycol, and stimulant laxatives. Products specifically intended to treat constipation with an active medicinal ingredient are eligible.

Purchasing with Your FSA

Using your FSA to purchase eligible items, including laxatives, can be done through a few common methods. Many FSA plans provide a debit card, which functions similarly to a regular debit card but is specifically linked to your FSA. This card can be used directly at pharmacies or other approved merchants that accept healthcare benefit cards.

For purchases not made with an FSA debit card, or if substantiation is required, individuals can pay out-of-pocket and then submit a reimbursement claim. This process typically involves submitting an itemized receipt to the FSA administrator for review. Retaining detailed receipts for all purchases is important, as they may be required to verify the eligibility of the expense.