Can I Buy a Humidifier With My FSA Card?
Confused about FSA eligibility? Discover the guidelines for medical device purchases, including when items like humidifiers can be covered with a doctor's note.
A Flexible Spending Account (FSA) offers a tax-advantaged way to manage healthcare costs. These accounts allow individuals to set aside pre-tax money from their paycheck to cover eligible medical and dental expenses. This tool reduces taxable income and provides funds for health-related needs for the account holder, spouse, and eligible dependents.
Understanding FSA Eligibility
The Internal Revenue Service (IRS) defines eligible medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This broad definition covers common healthcare services and products, including prescription medications, doctor visits, dental procedures, vision care, and certain medical equipment.
Items considered for overall health or personal comfort do not qualify as eligible expenses. However, an item can become eligible if a healthcare provider determines it is medically necessary to treat a specific condition. Medical necessity is a requirement for FSA reimbursement.
Humidifiers and Your FSA
Humidifiers are not considered eligible FSA expenses. They are viewed as devices for general health or personal comfort, such as improving air quality. This means you cannot use FSA funds to purchase a humidifier.
An exception exists if a humidifier is prescribed by a healthcare provider for a specific medical condition. If a doctor recommends one to alleviate symptoms of conditions like asthma, severe allergies, chronic respiratory issues, or certain skin conditions, it may become eligible. To qualify, you need a “Letter of Medical Necessity” (LMN) from your healthcare provider. This letter should detail the diagnosis and explain its medical necessity for treatment.
Using Your FSA Card or Seeking Reimbursement
If a humidifier is eligible with a Letter of Medical Necessity (LMN), you can purchase it using your FSA. Some individuals might use their FSA debit card directly. However, even with direct card use, the purchase may be subject to verification by the FSA administrator, especially for items requiring an LMN.
Alternatively, you can pay for the humidifier out-of-pocket and then submit a claim for reimbursement. The reimbursement process requires submitting a receipt of the purchase along with the Letter of Medical Necessity. Keeping the LMN and receipts is important for your records and potential audits. Claim processing times vary, but range from 3 to 10 business days, with reimbursements issued via direct deposit or check.