Are Nasal Strips FSA Eligible?

Flexible Spending Accounts (FSAs) allow individuals to manage healthcare costs using pre-tax dollars. Participants set aside income, sheltered from federal income and payroll taxes, to cover eligible medical expenses. Many individuals use FSAs for various health-related products and services, leading to questions about item eligibility. Understanding these criteria, such as for nasal strips, helps maximize FSA benefits.

Understanding FSA Eligibility

For an expense to qualify for reimbursement through a Flexible Spending Account, it must meet the Internal Revenue Service (IRS) definition of “medical care.” This definition includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses primarily for general health improvement or cosmetic purposes do not qualify.

Historically, many over-the-counter (OTC) products required a doctor’s prescription to be FSA eligible. The CARES Act of 2020 changed this, making most OTC medicines and menstrual care products eligible for reimbursement without a prescription. This broadened the scope of what can be purchased with FSA funds.

An item’s eligibility hinges on its medical necessity, meaning it must be primarily for the prevention or alleviation of a physical or mental defect or illness. While a wide range of products are eligible, consult your FSA administrator’s list of eligible expenses or IRS Publication 502, “Medical and Dental Expenses,” for guidance.

Nasal Strips and FSA Eligibility

Nasal strips are eligible for reimbursement through a Flexible Spending Account, provided they are used for medical purposes. These products are used to alleviate symptoms like nasal congestion, improve breathing during sleep to reduce snoring, or assist individuals with conditions such as sleep apnea. Their primary function aligns with the IRS definition of medical care, as they mitigate or treat physical conditions affecting breathing.

As over-the-counter items, nasal strips became eligible for FSA reimbursement following the CARES Act in 2020. This allowed them to be directly purchased with FSA funds without a prescription, removing the need for a physician’s note.

Differentiate between medical and non-medical use. If nasal strips are used purely for athletic performance enhancement without an underlying medical reason, or for cosmetic purposes, they may not qualify for reimbursement. While federal guidelines establish broad eligibility, verify product eligibility with your FSA administrator, as some plans may have variations in their approved lists.

Using Your FSA for Eligible Purchases

Once an item, such as nasal strips, is confirmed as FSA eligible, there are several methods for using your account funds. The most common and convenient approach is through an FSA debit card, which functions similarly to a regular debit card at the point of sale. Many pharmacies, grocery stores, and online retailers selling eligible healthcare products accept these cards directly.

If an FSA debit card is not accepted, or if you prefer to pay out-of-pocket, you can submit a claim for reimbursement to your FSA administrator. This process requires an itemized receipt showing the date of purchase, the item’s name (e.g., “nasal strips”), and the cost. Many administrators provide an online portal for claim submission, or you may need to complete a paper form.

After submitting a claim with the necessary documentation, reimbursement is processed within a few business days, with funds deposited directly into your bank account or sent via check. Retain all itemized receipts and supporting documentation for your FSA purchases. This documentation may be required in an IRS audit to verify expense eligibility.