Can You Buy Probiotics With an FSA or HSA?

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) offer valuable tax advantages for managing healthcare costs, allowing individuals to set aside pre-tax money for eligible health-related expenses. The core principle governing the use of these funds revolves around “qualified medical expenses,” as defined by the Internal Revenue Service (IRS). Understanding these definitions is important for maximizing the benefits of these accounts for various healthcare needs.

Probiotic Eligibility with FSA and HSA

Probiotics can sometimes be considered a qualified medical expense for reimbursement through an FSA or HSA, but this typically requires specific documentation. While many over-the-counter supplements are generally not eligible, probiotics may qualify if deemed medically necessary to treat a particular health condition, moving them beyond general health or wellness.

To establish medical necessity, a Letter of Medical Necessity (LMN) from a healthcare provider is required. This letter documents that the probiotic is used to alleviate, treat, or prevent a diagnosed medical condition, rather than for routine health maintenance. The LMN should state the patient’s specific medical diagnosis, the recommended probiotic, and the anticipated duration of treatment. Without this documentation, probiotics are ineligible for reimbursement, as they fall under dietary supplements for general well-being.

The Reimbursement Process

Once a probiotic purchase is made and documentation obtained, the reimbursement process involves several steps. Individuals should retain a detailed, itemized receipt for the probiotic purchase, showing the item, date, and amount paid. This receipt, along with the Letter of Medical Necessity, forms the basis of the claim.

Claims are submitted to the FSA or HSA administrator through an online portal, mail, or fax. Submission requires account details, purchase date, amount, and attachment of both the itemized receipt and the LMN. Processing times vary, from five to ten business days, with funds disbursed through direct deposit or a check.

Distinguishing Qualified Medical Expenses

The IRS defines qualified medical expenses as costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, and this definition is central to determining what can be covered by tax-advantaged health accounts. Expenses that are solely for the benefit of general health, such as many nutritional supplements or general wellness products, are typically not eligible for reimbursement without specific medical substantiation. While probiotics offer general health benefits, their eligibility for FSA or HSA reimbursement hinges on their direct connection to treating a diagnosed medical condition. A Letter of Medical Necessity ensures the expense aligns with the IRS definition of a qualified medical expense, distinguishing it from purchases made for general health support. This principle applies broadly to many over-the-counter items that might have both general wellness and specific medical applications.