Is Face Wash FSA Eligible? What to Know

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for qualified out-of-pocket health care costs. This arrangement reduces taxable income. Funds within an FSA can be used for various medical and dental expenses for the account holder, their spouse, and dependents. FSAs typically operate on an annual basis and are funded through payroll deductions.

General Eligibility for Skincare Products

Most standard face washes are not eligible for FSA reimbursement because they are generally considered cosmetic or for general hygiene. For an item to be FSA eligible, its primary purpose must be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body, as defined by the IRS.

However, certain skincare products are FSA eligible without requiring a prescription. For instance, sunscreen with an SPF of 15 or higher and broad-spectrum protection is eligible, due to its role in preventing skin cancer. Acne treatments, whether over-the-counter or prescription, are eligible if they address specific conditions like active acne or clogged pores, such as those containing salicylic acid or benzoyl peroxide. Similarly, medicated creams for conditions like eczema, psoriasis, or rosacea are eligible.

Products Requiring a Letter of Medical Necessity

Some products or services that fall outside the typical IRS definition of “medical care” can become FSA eligible with a Letter of Medical Necessity (LMN). An LMN is a document from a licensed healthcare provider that verifies an item or service is medically necessary for the diagnosis, treatment, or prevention of a specific medical condition. For example, a specialized face wash prescribed by a dermatologist for a severe skin condition, like chronic dermatitis, might become eligible with an LMN.

The process for obtaining an LMN involves consulting a healthcare provider to discuss the medical condition and why the specific product is needed. The letter should include the patient’s name, a specific diagnosis, a description of the recommended treatment, and how long the expense will be needed. The LMN must be signed by a licensed practitioner and is typically valid for one year, though some plans may require earlier renewal. After obtaining the LMN, it is submitted to the FSA administrator along with the claim for reimbursement.

How to Confirm Product Eligibility

To verify the FSA eligibility of a particular product, several practical steps can be taken. Many products that are FSA eligible will display an “FSA eligible” badge or label on their packaging or product detail page. Consumers can also check reputable FSA-specific online stores or marketplaces, which often have search features and comprehensive lists of eligible items. These platforms typically categorize items by eligibility, sometimes indicating if an LMN is required.

Consulting the specific FSA plan administrator’s website or customer service is another reliable method, as eligibility can sometimes depend on the individual plan’s interpretation. The IRS Publication 502, “Medical and Dental Expenses,” serves as the definitive source for general eligible expenses, although it may not list every specific product. Always retain receipts for all FSA purchases, as the IRS or your plan administrator may request documentation to verify eligibility.