Are Water Filters FSA Eligible? How to Get Reimbursed

A Flexible Spending Account (FSA) allows employees to set aside pre-tax income to cover qualified medical expenses. This reduces taxable income, providing a discount on eligible health-related purchases and services. Not all health-related products automatically qualify for reimbursement.

FSA Eligibility for Water Filters

Water filters are not typically considered a general medical expense eligible for FSA reimbursement without specific justification. To qualify, a water filter must meet the Internal Revenue Service (IRS) definition of a medical expense. Its primary purpose must be for the “diagnosis, cure, mitigation, treatment, or prevention of disease,” rather than for general health improvement.

To establish eligibility, a Letter of Medical Necessity (LMN) or prescription from a licensed healthcare provider is required. This document certifies the water filter is medically necessary to treat or alleviate a specific health condition for the individual or a qualified dependent. The LMN must explicitly state the medical condition and explain how the water filter is essential to address that condition. For instance, a doctor might prescribe a water filter for individuals with severe allergies, compromised immune systems, or specific gastrointestinal issues where tap water quality directly impacts their health.

Documentation for Reimbursement

Gathering precise documentation is a crucial preparatory step before submitting any FSA reimbursement claim. The Letter of Medical Necessity (LMN) must be issued by a licensed healthcare provider. It must specifically detail the patient’s diagnosed medical condition and clearly state the water filter’s medical necessity, explaining how it will treat or mitigate the identified condition.

In addition to the LMN, an itemized purchase receipt for the water filter is required. This receipt must clearly show the date of purchase, the vendor’s name, a description of the item purchased (e.g., “water filter”), and the exact amount paid. Ensure the receipt is detailed and legible, as vague descriptions or lack of specific information can lead to claim denials.

Claiming Your Water Filter Expense

Once all necessary documentation has been gathered, the process of claiming your water filter expense can begin. Most FSA administrators offer online portals, mobile applications, or mail-in forms for submitting claims. You will be prompted to upload digital copies of your Letter of Medical Necessity and the itemized purchase receipt.

Upon submission, the FSA administrator reviews the claim and supporting documents. Processing times can vary, but many claims are processed within one to three business days for direct deposit. Reimbursement is typically issued through direct deposit or a paper check. Monitor your claim status through your FSA account, as administrators may occasionally request additional information.