Does an FSA Cover Prescription Glasses?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for various healthcare costs. These funds are deducted from an employee’s paycheck before taxes, which effectively reduces their taxable income. The FSA helps manage out-of-pocket medical, dental, and vision expenses. This tax-advantaged account provides a way to pay for eligible health care services and products with funds not subject to federal income, Social Security, or Medicare tax.

Eligibility of Prescription Glasses

Prescription glasses are an eligible expense for Flexible Spending Accounts. The Internal Revenue Service (IRS) defines qualified medical expenses as items primarily for diagnosis, cure, mitigation, treatment, or prevention of disease. Prescription glasses meet this definition by correcting vision. Both frames and prescription lenses are eligible for FSA reimbursement when purchased as a complete set.

Eligibility extends to various types of prescription eyewear, including bifocal lenses, progressive lenses, single-vision glasses, and prescription sunglasses, provided they are medically necessary for vision correction. Reading glasses, whether prescription or non-prescription, are also typically eligible. Only items specifically required for medical vision correction qualify for FSA funds, distinguishing them from non-prescription or cosmetic eyewear.

Other Eligible Vision Expenses

Beyond prescription glasses, Flexible Spending Accounts cover a range of other vision-related expenses. Contact lenses, including daily, weekly, and monthly disposables, are eligible, along with necessary care items like cleaning solutions and cases. Eye exams for vision correction or medical diagnosis are also eligible expenses. Vision correction surgeries, such as LASIK, are generally covered if medically necessary. Other eligible items include prescription safety goggles, swim goggles, and eye drops that address a medical condition.

Using Your FSA for Vision Expenses

Individuals can typically use their FSA funds for eligible vision expenses through two primary methods: direct payment with an FSA debit card or submitting claims for reimbursement. Many FSA programs provide a debit card, allowing users to pay directly at the point of sale, such as an optometrist’s office or optical shop. When using the debit card, the transaction may be automatically approved if the merchant is a qualified healthcare provider.

If a debit card is not available or accepted, individuals must pay out-of-pocket and then submit a claim for reimbursement to their FSA administrator. For reimbursement, documentation is required, including an itemized receipt or an Explanation of Benefits (EOB) form. This documentation must show the provider’s name, date of service or purchase, a detailed description of the item, patient’s name, and amount paid. Retain all itemized receipts and supporting documents for verification requests or IRS audits, as credit card receipts or canceled checks alone are insufficient.