Can You Buy Contact Lenses With Your FSA?

A Flexible Spending Account (FSA) is an employer-sponsored benefit allowing individuals to set aside pre-tax money from their paycheck for qualified medical expenses. Funds contributed to an FSA are exempt from federal income, Social Security, and Medicare taxes, which can result in significant tax savings. FSAs can be used for various healthcare services, including vision care, to pay for out-of-pocket health costs.

Eligibility of Contact Lenses and Related Supplies

Contact lenses are eligible expenses for FSA reimbursement, provided they are for corrective vision purposes. This includes prescription contact lenses designed to correct vision impairments such as nearsightedness, farsightedness, and astigmatism.

Various types of corrective contact lenses qualify, including daily disposables, bi-weekly, and monthly lenses, as well as specialized lenses like toric for astigmatism or multifocal for presbyopia. Contact lenses purchased solely for cosmetic purposes are not eligible. Beyond the lenses, essential related supplies are also eligible. This includes contact lens solutions for cleaning, disinfecting, and storage, rewetting drops, and contact lens cases. These supplies are considered integral to the safe use and maintenance of corrective lenses.

How to Use Your FSA for Purchases

Using your FSA for eligible purchases, such as contact lenses, involves one of two methods. Many FSA plans issue a dedicated debit card linked directly to your FSA balance. When making a purchase at a healthcare provider or approved retailer, you can simply swipe this card to pay directly from your pre-tax funds. This method offers immediate payment and can reduce the need for manual reimbursement claims.

Alternatively, you can pay out-of-pocket and then submit a claim for reimbursement from your FSA. This process involves accessing your FSA administrator’s online portal or submitting a physical claim form. You must provide detailed documentation to support your claim, which the administrator will review for eligibility. Once approved, funds are reimbursed, typically through direct deposit or a check. Monitor your FSA balance and submit claims promptly, especially given the “use-it-or-lose-it” rule where unused funds may be forfeited at the end of the plan year, though some plans offer a grace period or limited carryover.

Essential Documentation for Reimbursement

When submitting a claim for FSA reimbursement, providing accurate and complete documentation is crucial. The primary document required is an itemized receipt from the provider or merchant. This receipt must clearly show the date of service or purchase, the name of the provider or store, a detailed description of each item or service purchased, and the total amount charged. A simple credit card slip or balance due statement is generally insufficient.

For prescription items like contact lenses, a valid prescription from an eye care professional is often required to substantiate medical necessity. This prescription confirms that the purchase is for a legitimate medical purpose rather than a cosmetic one. If the expense was partially covered by a vision insurance plan, an Explanation of Benefits (EOB) statement from your insurance company may also be needed. This document details what your insurance paid and what amount remains your responsibility, ensuring that only the unreimbursed portion is claimed from your FSA. Keeping meticulous records of all healthcare expenditures and corresponding documentation is a recommended practice for smooth FSA administration.

Other Eligible Vision Expenses

Beyond contact lenses, a Flexible Spending Account can cover a range of other vision-related expenses. Routine eye exams are universally eligible, as they are essential for assessing vision health, detecting refractive errors, and screening for eye conditions. These exams include various tests performed by optometrists or ophthalmologists to determine visual acuity and overall eye health.

Prescription eyeglasses, including frames and lenses, are also eligible expenses, as they directly correct vision problems. This eligibility extends to prescription sunglasses, which protect the eyes from harmful UV rays while providing necessary vision correction. Vision correction surgeries, such as LASIK (Laser-Assisted In Situ Keratomileusis), are typically FSA-eligible when performed to correct vision impairments like nearsightedness, farsightedness, or astigmatism. These surgical procedures aim to reduce or eliminate the need for glasses or contact lenses, and associated costs like pre-operative evaluations and post-operative medications may also qualify for reimbursement.