Is Sunscreen an FSA Eligible Purchase?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for eligible healthcare expenses. This provides a tax advantage for managing medical costs. Understanding which expenses qualify is important for maximizing FSA benefits.

General FSA Eligibility Criteria

The Internal Revenue Service (IRS) defines eligible medical expenses as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease or affecting any body function. These expenses must be primarily for medical care, not merely beneficial to general health. Common examples include doctor’s office visits, prescription medications, dental treatments, and vision care products like eyeglasses and contact lenses.

Over-the-counter (OTC) medicines and health products are now eligible for FSA reimbursement without a doctor’s prescription. However, expenses such as cosmetic procedures not addressing a deformity, or general health items like vitamins for overall well-being, typically do not qualify. The IRS provides detailed guidance on these rules in Publication 502.

Sunscreen Eligibility Requirements

Sunscreen qualifies as an eligible FSA expense when it meets specific criteria set by the IRS and the Food and Drug Administration (FDA). To be eligible, sunscreen must be broad-spectrum, protecting against both UVA and UVB rays, and have a Sun Protection Factor (SPF) of 15 or higher. While SPF 15 is the minimum for eligibility, many dermatological organizations recommend using sunscreen with SPF 30 or higher for more robust protection against sun damage.

Sunscreen is generally considered an eligible over-the-counter medical item because its primary purpose is to prevent sunburn and reduce the risk of skin cancer. For most broad-spectrum sunscreens with SPF 15 or above, a Letter of Medical Necessity (LOMN) from a healthcare provider is not required. However, if a product has a dual purpose—for example, a cosmetic item that also contains SPF—or if it is not clearly marketed as a suncare product, an LOMN might be necessary to justify its medical purpose for reimbursement.

Purchasing Sunscreen with Your FSA

There are two main ways to use your FSA funds for eligible sunscreen purchases: using an FSA debit card or submitting a claim for reimbursement. For direct payment, the merchant often needs an Inventory Information Approval System (IIAS) in place, which automatically identifies eligible medical expenses.

If you pay out-of-pocket, you can submit a claim to your FSA administrator for reimbursement. This process requires an itemized receipt that clearly shows the product purchased, the date of purchase, the cost, and the merchant’s name. Credit card receipts or canceled checks are usually not sufficient as proof of purchase. Retain all itemized receipts, even when using an FSA debit card, as your plan administrator may request them for substantiation. Contacting your specific FSA plan administrator is recommended to confirm any unique requirements or eligibility nuances before making a purchase.