Can You Buy Vitamins With an FSA Card?

A Flexible Spending Account (FSA) is an employer-sponsored benefit plan allowing employees to set aside pre-tax dollars for qualified medical expenses. This arrangement reduces an individual’s taxable income, providing a tax advantage for healthcare costs. Funds within an FSA can only be used for expenses that meet the Internal Revenue Service (IRS) definition of “medical care.”

Understanding Vitamin Eligibility

Generally, over-the-counter vitamins and dietary supplements for general health are not eligible for FSA reimbursement. The IRS defines qualified medical expenses as amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body structure or function. Items for general health do not meet this criterion. However, an exception exists when a vitamin or supplement is specifically prescribed by a licensed medical professional to address a diagnosed medical condition.

For instance, if a doctor diagnoses a specific nutritional deficiency and prescribes a particular vitamin, it may become eligible. Prenatal vitamins are also often eligible because they prevent certain birth defects and support fetal development. Most vitamins require a medical recommendation to qualify for FSA use. The key distinction is whether the vitamin serves a specific medical purpose rather than general health maintenance.

The Medical Necessity Requirement

To establish eligibility for a vitamin that is not typically covered, a Letter of Medical Necessity (LMN) is often required. An LMN is a written statement from a licensed medical professional, such as a physician, nurse practitioner, or physician assistant, confirming that a specific item or service is necessary to treat a particular medical condition. This document serves to prove that the expense is incurred for medical purposes and not for general health benefits.

The LMN must contain the specific medical condition being treated, the exact vitamin or supplement recommended, its medical purpose, and the duration for which it is needed. Obtain this letter before making the purchase. While usually kept for your records, it may be requested by the FSA administrator for verification or during an audit. A new LMN may be necessary if the treatment plan extends beyond the original duration or for subsequent plan years.

Using Your FSA Card for Approved Items

Once the eligibility of an item, possibly through an LMN, has been established, using an FSA debit card for purchase is straightforward. This card functions much like a regular debit card but is directly linked to your flexible spending account, allowing you to pay for qualified medical expenses at the point of sale. Many pharmacies, some grocery stores, and online health product retailers accept FSA cards, particularly those with an Inventory Information Approval System (IIAS) that automatically identifies eligible items.

Retain itemized receipts for all FSA purchases, even those made with the debit card, as they prove a qualified expense. Receipts should clearly show the date, provider or store name, a detailed description of the item or service, and the expense amount. Credit card receipts often lack sufficient detail and may not be accepted. If a purchase is declined, you can pay out-of-pocket and submit a claim for reimbursement, including the itemized receipt and, if applicable, the LMN. Maintaining thorough records of both LMNs and receipts is essential for potential verification requests or an IRS audit.