Are Panty Liners and Feminine Products FSA Eligible?

A Flexible Spending Account (FSA) is an employer-sponsored arrangement allowing individuals to set aside pre-tax money for various out-of-pocket healthcare expenses. This tax-advantaged account reduces taxable income, as contributions are deducted from an employee’s salary before taxes are applied. The primary purpose of an FSA is to help individuals manage and pay for qualified medical, dental, and vision costs throughout the year.

General FSA Eligibility Criteria

The Internal Revenue Service (IRS) outlines specific criteria for expenses to be considered eligible for FSA reimbursement. An expense must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This ensures only items related to medical care qualify.

Expenses that are merely beneficial for general health or for cosmetic purposes are not eligible. For instance, while medical equipment or prescription drugs are covered, general vitamins or non-medically necessary cosmetic procedures are not. These rules are detailed in IRS Publication 502.

FSA Eligibility for Feminine Care Products

With the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, menstrual care products became recognized as qualified medical expenses. This legislative change expanded the scope of FSA-eligible items, making these products reimbursable without requiring a prescription. Eligibility is retroactive to purchases made after December 31, 2019.

Panty liners are included in the definition of eligible menstrual care products. This category includes items such as tampons, pads, menstrual cups, sponges, and period underwear. This update allows individuals to use their pre-tax FSA funds to cover the cost of these hygiene products.

Using Your FSA for Purchases

Utilizing FSA funds for eligible purchases, including panty liners, involves straightforward methods. Many FSA plans provide a debit card, which can be used directly at the point of sale at pharmacies, supermarkets, and online retailers that accept these cards. This method automatically deducts the cost from your FSA balance.

Alternatively, individuals can pay for eligible items out-of-pocket and then submit a claim for reimbursement to their FSA administrator. Keep detailed receipts including the date of purchase, item description, and amount paid. While debit card transactions reduce the need for immediate receipt submission, retaining documentation for all purchases is recommended for audit or verification requests.