OutpatientMD.com identifies potential FSA eligible items as a free service to our customers.  This helps simplify the use of Flexible Spending Account (FSA) programs. We clearly mark over-the-counter (OTC) products most likely to be eligible for reimbursement with the following icon:

To help eliminate any additional paperwork, keep track of all your FSA-eligible purchases, provide a receipt to your administrator or keep for your personal records.

Note: Although the IRS sets guidelines for FSA programs, individual employers always have the final determination of which expenses are covered by their FSA programs.

Below are some common questions regarding FSA programs/items.  Click on any of the links for additional information:

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) allows consumers to deduct pre-tax dollars from their paychecks and deposit those funds in employer sponsored accounts to pay for medical expenses – this includes over-the-counter (OTC), prescription, and vision health essentials. Consumers then submit expense receipts to healthcare administrators for potential reimbursement.

For more information about Flexible Spending Accounts (FSAs), contact your employer directly. 

What types of purchases are FSA-eligible?

Prescriptions and Contact Lenses:
Prescriptions and contact lenses are reimbursable.

Over-The-Counter (Non-Prescription) Items:
Over-the-counter (OTC) health products are reimbursable if they are used to alleviate or treat personal injuries or sickness and are generally accepted as falling within the category of medicine or drugs. Examples include:

• Cough, cold, and allergy products
• Antacids
• Antifungals
• Pain relievers
• First-aid products
• Dietary supplements, including vitamins, minerals, herbals, and botanicals, are covered when used to treat a current illness, but not when used for general health purposes.

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) allows individuals and/or employers to contribute pretax dollars to pay for medical expenses including over-the-counter (OTC), prescription, and vision health essentials not covered by insurance policies/plans.  Unlike a Flexible Spending Account (FSA), unused funds do not disappear at years end.  HSA dollars rollover, which means that account holders can build up balances to pay for medical expenses. 
Account holders submit expense deductions on Schedule A, Form 1040 to the IRS.  For more information on submitting deductions, go to the Internal Revenue Service Website.  For more information about Health Savings Accounts (HSAs), go to Internal Revenue Service Website.

Do you identify HSA-eligible products?

As a general rule, any product that is FSA-eligible is also HSA-eligible.