Are Tampons Covered Under an FSA?
Unlock the full potential of your FSA. Learn how expanded eligibility now includes common personal care and over-the-counter health essentials.
A Flexible Spending Account (FSA) offers a tax-advantaged way to pay for eligible healthcare expenses. Employers typically offer these accounts, allowing employees to set aside pre-tax money from their paychecks. This pre-tax contribution reduces an individual’s taxable income, providing a financial benefit for covering various out-of-pocket medical costs.
Eligibility of Menstrual Care Products
Tampons and other menstrual care products are now eligible for reimbursement through a Flexible Spending Account. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed in March 2020, reclassified these products as qualified medical expenses, making them eligible for FSA, HSA, and HRA reimbursement. This change was retroactively effective from January 1, 2020, and includes items such as:
Pads
Liners
Menstrual cups
Sponges
Other Newly Eligible Personal Care Items
The CARES Act also expanded the eligibility of other non-prescription over-the-counter (OTC) items for FSA reimbursement. This legislation removed the prior requirement for a doctor’s prescription for many OTC medications, making a wider range of common health products eligible. Examples of these newly eligible items include:
Pain relievers
Cold and flu medications
Allergy medicines
Heartburn remedies
Using Your FSA for Reimbursement
Using your FSA to pay for eligible expenses, including menstrual care products and other OTC items, typically involves two main methods. Many FSA administrators provide a debit card linked directly to your account. This card can be used at the point of sale at pharmacies, drugstores, and even some grocery stores that have systems to identify eligible items. When using the card, it functions like a regular debit card, with funds automatically deducted from your FSA balance.
Alternatively, you can pay for eligible expenses out-of-pocket and then submit a claim for reimbursement. This process usually involves submitting a claim form, either online or by mail, along with required documentation. Detailed, itemized receipts are crucial, as they must clearly show:
The item purchased
The date of purchase
The merchant’s name
The amount paid
Even when using an FSA debit card, it is important to retain all receipts for potential substantiation requests or audits by the FSA administrator or the IRS.