Are Menstrual Pads and Products HSA Eligible?

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are tax-advantaged savings plans for healthcare expenses. These accounts allow individuals to set aside pre-tax money to cover qualified medical costs. Eligible expenses are those incurred for medical care, as defined by the Internal Revenue Service (IRS).

Eligibility of Menstrual Products

Menstrual products are now recognized as eligible expenses for Health Savings Accounts and Flexible Spending Accounts. This change occurred with the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. Before this, these products were not considered qualified medical expenses. The CARES Act reclassified menstrual care products, making them reimbursable through HSAs, FSAs, and certain Health Reimbursement Arrangements (HRAs) retroactively to January 1, 2020.

Eligible menstrual products include tampons, pads, panty liners, menstrual cups, menstrual discs, and reusable absorbent period underwear. Products must be specifically intended for menstrual care, not general hygiene or cosmetic purposes, to qualify.

Using Your HSA or FSA Funds

Utilizing your HSA or FSA funds for eligible menstrual products can be done through two methods: direct payment or reimbursement. Many providers issue a debit card linked to your account. This card can be used directly at the point of sale, whether in a physical store, at a pharmacy, or for online purchases, to pay for qualified medical expenses.

Alternatively, you can pay for eligible menstrual products out-of-pocket and then seek reimbursement from your HSA or FSA. The reimbursement process involves submitting a claim to your account administrator. This claim requires details about the product or service, the amount paid, and the date of service. After your claim is processed, funds can be transferred from your HSA or FSA to your personal bank account or a check may be issued, depending on your provider’s options. For HSAs, there is generally no deadline to reimburse yourself for expenses incurred after the account was established.

Documentation and Record Keeping

Maintaining accurate records is important for all purchases made with HSA or FSA funds, including menstrual products. Keep itemized receipts that clearly show the date of purchase, the vendor, a description of the item, and its cost. These records substantiate that expenses were for qualified medical care, as defined by IRS regulations.

This documentation is important in case your plan administrator requests verification or if your account is audited by the IRS. While you typically do not need to submit these records with your tax return, retaining them for at least three years after filing your tax return is a common guideline, aligning with the general statute of limitations for IRS audits. Some suggest keeping records longer, up to seven years, especially if a substantial omission is found during an audit.