Is Sunscreen FSA Eligible? How to Buy Sunscreen With an FSA

A Flexible Spending Account (FSA) offers an arrangement through an employer, enabling individuals to pay for various out-of-pocket medical expenses with pre-tax dollars. This mechanism helps participants save on healthcare costs by reducing their taxable income. These tax advantages make FSAs a valuable tool for managing healthcare expenditures.

Understanding FSA Eligible Expenses

The Internal Revenue Service (IRS) establishes specific rules and criteria for what qualifies as an FSA-eligible expense. Generally, expenses must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This foundational principle is often referred to as “medical necessity.” Common categories of eligible expenses include doctor visits, prescription medications, dental care, and vision care.

Over-the-counter (OTC) medications and medical supplies also frequently qualify, especially since changes in regulations made many such items eligible without a prescription. However, expenses considered merely beneficial to general health, such as vitamins for general well-being or cosmetic procedures without a medical purpose, are not eligible.

Sunscreen Qualification Criteria

Sunscreen is FSA-eligible when its use is for the prevention of disease. For over-the-counter (OTC) sunscreen, it is eligible without a doctor’s note if it meets certain criteria. This includes being broad-spectrum, protecting against both UVA and UVB rays, and having a Sun Protection Factor (SPF) of 30 or higher. Sunscreens marketed as cosmetics or those with a lower SPF are less likely to be eligible without further documentation.

For sunscreens that do not meet these criteria, a Letter of Medical Necessity (LMN) from a healthcare provider may be required. An LMN is a written statement from a doctor confirming the medical necessity of the item for a specific medical condition. This document should detail the patient’s diagnosis, the recommended treatment, and how the product prevents a medical condition. Even with an LMN, eligibility is not guaranteed, and the expense must still align with IRS guidelines.

Using Your FSA for Sunscreen Purchases

Purchasing sunscreen with an FSA depends on how your plan is administered. Many FSA plans provide a debit card for eligible medical expenses. You can use this card directly at merchants with an IRS-approved inventory information approval system (IIAS), like pharmacies and some grocery stores, where eligible products are identified at the point of sale.

If a merchant does not have an IIAS system or if you do not use your FSA debit card, you can pay for the sunscreen out-of-pocket and then submit a claim for reimbursement. This process requires documentation, including an itemized receipt showing the product purchased, the date of purchase, and the amount paid.

Keep all receipts, as the IRS requires documentation for all FSA purchases, even those made with a debit card, for potential substantiation or audit. If a Letter of Medical Necessity was required for the purchase, it should be kept on file with the receipt, ready to be provided if requested by your plan administrator.