Is Sunscreen an HSA or FSA Eligible Medical Expense?

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) allow individuals to use pre-tax dollars for qualified medical expenses, reducing taxable income. A common question concerns the eligibility of everyday health items for reimbursement. Understanding which expenses qualify is essential for maximizing the benefits of these accounts.

HSA/FSA Eligibility for Sunscreen

Sunscreen can be an eligible medical expense for Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) if it meets specific criteria. Products must have a Sun Protection Factor (SPF) of 15 or higher and offer broad-spectrum protection against UVA and UVB rays. The Internal Revenue Service (IRS) recognizes sun protection as a preventative measure against skin conditions, including skin cancer.

While many qualifying sunscreens are broadly eligible, a Letter of Medical Necessity (LMN) or a prescription from a healthcare provider can strengthen a claim, particularly for individuals with specific medical conditions. This document is relevant if sunscreen use is directly tied to managing or preventing a diagnosed illness, such as chronic sun sensitivity, a history of skin cancer, or certain autoimmune diseases that cause extreme photosensitivity. An LMN clarifies that the purchase is for a medical purpose rather than general cosmetic use.

An LMN typically outlines the patient’s specific medical condition and explains why sunscreen is necessary for treatment, mitigation, or prevention of that condition. It generally includes the healthcare provider’s recommendation for sunscreen and, if applicable, the duration for which it is needed. For example, if a dermatologist recommends a specific high-SPF sunscreen due to a patient’s history of melanoma, an LMN from that physician would support the expense’s eligibility.

For most qualifying sunscreens meeting SPF and broad-spectrum requirements, an LMN may not be required upfront by all plan administrators. However, if a product is not clearly marketed as sun protection but contains SPF, or if the expense appears unusually high, an administrator may request further substantiation, including an LMN. Always maintain documentation for all purchases.

Substantiating Sunscreen Purchases

To claim sunscreen purchases as an HSA or FSA expense, maintain meticulous records. The process begins with obtaining a Letter of Medical Necessity (LMN) from a healthcare provider, if required. This letter should be dated, signed by the physician, clearly state the medical condition necessitating sunscreen use, recommend the specific type of sunscreen, and indicate the duration of the medical need.

After purchasing eligible sunscreen, retain all itemized receipts. These receipts must clearly show the date of purchase, the vendor’s name, a detailed description of the item (e.g., “broad-spectrum sunscreen SPF 30”), and the total cost. This detail is crucial for substantiation, as general credit card statements are usually insufficient.

When submitting a claim for reimbursement to your HSA or FSA administrator, you will typically use an online portal, mobile application, or mail a physical form. You must attach both the itemized receipt and the LMN, if applicable, to your claim. The administrator will review these documents to ensure the expense meets IRS guidelines and plan rules before approving reimbursement.

Even if you use an HSA or FSA debit card for direct payment, retain all documentation. While some point-of-sale systems may automatically approve transactions for eligible items, administrators often conduct post-transaction reviews and may request receipts or an LMN to verify eligibility. For tax purposes and in the event of an IRS audit, account holders are responsible for proving the eligibility of all expenses and should retain records for up to seven years.