Does an FSA Cover Sunscreen?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that enables individuals to set aside pre-tax funds for eligible healthcare expenses, reducing taxable income and making healthcare more affordable. FSAs primarily cover out-of-pocket medical, dental, and vision costs not typically paid by insurance. While FSAs offer significant tax advantages, they are generally subject to a “use-it-or-lose-it” rule, meaning funds not spent by the end of the plan year may be forfeited, though some plans may offer a grace period or limited carryover.

Sunscreen Eligibility for FSA

Sunscreen can be an eligible expense for Flexible Spending Accounts, provided it meets specific conditions set by the IRS and FDA. To qualify, sunscreen’s primary purpose must be medical, preventing sunburn and reducing skin cancer risk. Products regulated as over-the-counter (OTC) drugs by the FDA are generally eligible.

Eligible sunscreens have a Sun Protection Factor (SPF) of 15 or higher and offer broad-spectrum protection against UVA and UVB rays. This distinguishes them from cosmetic products like tanning lotions or moisturizers with minimal SPF, which are not eligible. Products primarily for moisturizing or cosmetic use with incidental sun protection usually do not qualify.

A Letter of Medical Necessity (LOMN) from a healthcare provider might be required for certain sun protection items to confirm medical necessity. This is less common for standard broad-spectrum sunscreens. However, for specialized sun protection or if the plan administrator has specific requirements, an LOMN can validate the expense. Items generally not eligible include sunglasses, regular hats, and tanning oils without sufficient SPF, as their primary function is not medical protection. Eligibility is determined by the product’s classification as a medical necessity or an OTC drug for disease prevention.

Using Your FSA for Sunscreen Purchases

Using FSA funds for eligible sunscreen purchases involves specific steps for proper processing and compliance. The most common method is using a dedicated FSA debit card, which functions like a regular debit card but links directly to your Flexible Spending Account. This card can be used at approved merchants, including pharmacies and certain grocery stores, automatically deducting the cost from your account for eligible items.

Alternatively, individuals can pay for eligible sunscreen out-of-pocket and submit a claim for reimbursement. This process typically requires submitting a reimbursement form with detailed purchase documentation. Accurate, itemized receipts are essential, as they must clearly show the product, date of purchase, and cost. These receipts serve as proof of eligibility, especially if the FSA debit card transaction requires verification or for manual claims.

For certain non-standard or specialized items, an LOMN may be necessary to substantiate the expense. This document, from a licensed healthcare provider, explains the specific medical condition being treated and why the item is medically required. While not always needed for common sunscreens, check with your FSA administrator for specific product requirements. Reimbursement claims can typically be submitted through online portals, mobile applications, or mail, with processing times often ranging from one to two business days.