Can You Buy Protein Shakes With FSA?

A Flexible Spending Account (FSA) is an employer-sponsored benefit allowing individuals to set aside pre-tax money from their paycheck for eligible healthcare expenses. This arrangement can lead to tax savings by reducing taxable income. Many people wonder about the eligibility of various health-related items for FSA reimbursement, given the broad scope of healthcare needs.

General FSA Eligibility Guidelines

The Internal Revenue Service (IRS) defines what qualifies as a “medical expense” for FSA reimbursement. These are costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. IRS Publication 502 provides guidance on these eligible expenses, emphasizing that the primary purpose must be medical care.

Common examples include doctor visits, prescription medications, vision care such as eyeglasses and contact lenses, and dental work. However, items for general health, cosmetic purposes, or overall well-being without a specific medical diagnosis are not eligible. This includes general vitamins or supplements not prescribed for a medical condition.

Qualifying Protein Shakes for FSA Reimbursement

Protein shakes are generally not eligible for FSA reimbursement because they are considered dietary supplements for general health or performance, rather than specific medical treatment. An exception exists if a licensed medical professional prescribes them to treat a specific medical condition. This requires a Letter of Medical Necessity (LMN), a key document to justify the expense.

An LMN is a written statement from a healthcare provider, such as a doctor, physician assistant, or nurse practitioner, confirming that protein shakes are medically necessary for a diagnosed condition. The LMN must explicitly state the patient’s specific medical condition or diagnosis that the protein shakes are intended to treat or mitigate. It should also detail how the protein shakes will alleviate this condition, including the specific type or brand, recommended quantity or dosage, and the duration for which they are needed.

The Reimbursement Process

Once a Letter of Medical Necessity (LMN) is obtained from a healthcare provider and protein shakes purchased, submit a claim for reimbursement to the FSA administrator. This process requires the completed and signed LMN and itemized receipts for the purchased protein shakes. Receipts must include the merchant name, date of purchase, product description, and the dollar amount paid. Most FSA administrators offer methods for submitting claims, including online portals, mobile applications, or traditional mail and fax. An FSA-specific claim form may also be needed. Claims are processed within one to ten business days, with reimbursement usually issued via direct deposit or check.