Does an FSA Cover Deodorant and Antiperspirant?

A Flexible Spending Account (FSA) is a tax-advantaged financial tool offered by employers, allowing individuals to set aside pre-tax money from their paychecks for qualified medical expenses. This arrangement reduces taxable income, providing a financial benefit and helping manage out-of-pocket healthcare costs throughout the year.

Understanding FSA Eligibility Rules

For an expense to qualify for FSA reimbursement, it must meet the Internal Revenue Service (IRS) definition of “medical necessity.” This principle dictates that funds can only be used for items and services primarily intended for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This distinction separates expenses for genuine medical needs from those for general health, hygiene, or cosmetic purposes. Items for general well-being or personal care are not eligible unless they directly address a specific medical condition.

Deodorant and Antiperspirant Coverage

Standard deodorants and antiperspirants are not eligible for FSA reimbursement. These products are classified as personal hygiene or cosmetic items, designed for odor control and general freshness rather than for treating a specific medical condition.

However, an exception exists for certain medicated or prescription-strength antiperspirants. If a healthcare provider prescribes such a product to treat a diagnosed medical condition, like hyperhidrosis (excessive sweating), it may become FSA-eligible. In these cases, a Letter of Medical Necessity (LMN) from a licensed healthcare provider is required. An LMN verifies the medical necessity of the item, outlining the patient’s medical condition, a description of the recommended treatment, and the duration for which the expense is needed.

Other Common Eligible Expenses

Beyond prescription medications and doctor visits, many over-the-counter (OTC) products are FSA-eligible. Sunscreen is covered if it has a Sun Protection Factor (SPF) of 15 or higher and offers broad-spectrum protection against both UVA and UVB rays. Feminine hygiene products, including tampons, pads, and menstrual cups, became FSA-eligible as of March 2020, following the CARES Act. Basic first-aid supplies, such as bandages, antiseptics, and first-aid kits, are also eligible. Many common OTC medications, including pain relievers, cold and flu remedies, and allergy medications, are FSA-eligible without a prescription, a change also enacted by the CARES Act.

Making FSA Purchases

FSA funds can often be used through an FSA debit card or a reimbursement process. An FSA debit card allows for direct payment at the point of sale for eligible expenses. When using a debit card, it is important to keep detailed, itemized receipts for all purchases, as plan administrators may require them for verification or in case of an IRS audit. Alternatively, individuals can pay for eligible expenses out-of-pocket and then submit a claim form with documentation, such as an itemized statement or Explanation of Benefits (EOB), for reimbursement. It is advisable to consult with your specific FSA plan administrator, as eligibility lists and claim procedures can vary between different plans.