Can I use HSA to buy sunscreen?

[Free4Life11]

I'm told to go to the IRS, but the IRS says nonprescription medications are NOT eligible medical expenses. Then you go to the Treasury website and they say nonprescriprtion medications ARE qualified medical expense. So it's impossible to get a clear answer from anyone.

So do you think sunscreen would quality?

I know Walgreens prints a little "F" next to the item if it's eligible, but then again they claim a $.99 bottle of hand sanitizer is eligible and that doesn't seem right to me? Or maybe it is. But of course I can't see the "F" until after I've purchased the item.

I have all this money in the account and yes it rolls over, but it's earning like .05% interest or something pathetic like that, so I'd like to start using it.

 

[Nancy]

Go to the website Drugstore.com, type in the item you are questioning into the search, when the item comes up it will either have an FSA listed by it or not, if it has the FSA listed then you an also use the HSA account for it. I work with FSA/HSA accts and the guidelines are the same for what is allowed to be bought.


Non-prescription OTC medications are allowed (examples: allergy meds, cold meds, tylenol type products, conact lense solutions) but vitamins and supplements are no without a letter of medical necessity from a doctor.


On the IRS website, they are saying the OTC are not allowed for deductions; they use publication 502, section 213 for the allowed items

 

[laurie31]

This is my understanding...and what I've done, which I think is legal to the best of my knowledge.

Medical deductions for the IRS are not the same as what you can spend your HSA money on. You *can* buy stuff like contact solution with HSA money, but I honestly don't know about sunscreen. I've never thought about claiming it, but it seems logical, especially considering my grandmother died of melanoma. I am a stickler for my kids wearing it, and we use a lot of it. However, I'm still not sure it "counts." Somewhere I have this HUGE list from our HR department about what counts and what doesn't. I'll try to find it and see if suncreen is on there.

On a different note, you WANT your HSA money to build up, in case you someday have a serious accident or illness, then the money will be there. I know it's not earning a ton of interest, but at least it's safe in there. I'm trying to put as much as I can in there, so when the day comes that I have to end up on Medicare, at least I can pay for my prescriptions. (although by then, who knows what health care payment will look like, but all we can do is plan based on how things are now...)


ETA - thanks Nancy! You have saved me from a big search

 

[EthansMom]

Our Flex Spenind Account has a list of approved OTC meds. Sunscreen with an SPF of 30+ is on our allowed list.

 

[Nancy]

This is my understanding...and what I've done, which I think is legal to the best of my knowledge.

Medical deductions for the IRS are not the same as what you can spend your HSA money on. You *can* buy stuff like contact solution with HSA money, but I honestly don't know about sunscreen. I've never thought about claiming it, but it seems logical, especially considering my grandmother died of melanoma. I am a stickler for my kids wearing it, and we use a lot of it. However, I'm still not sure it "counts." Somewhere I have this HUGE list from our HR department about what counts and what doesn't. I'll try to find it and see if suncreen is on there.

On a different note, you WANT your HSA money to build up, in case you someday have a serious accident or illness, then the money will be there. I know it's not earning a ton of interest, but at least it's safe in there. I'm trying to put as much as I can in there, so when the day comes that I have to end up on Medicare, at least I can pay for my prescriptions. (although by then, who knows what health care payment will look like, but all we can do is plan based on how things are now...)


ETA - thanks Nancy! You have saved me from a big search

You're welcome. I get calls on this a lot at work. I tell them to use that website sine it seems the easiest, and that is also the website our debit cards work at.

I'm going to research that 30 SPF or above because I have never heard of that.

 

[Free4Life11]

Well drugstore.com does not list it as FSA approved. But then I found a long list on the CIGNA website that says it IS approved. Ay ay ay! You would think the IRS would just come out with a "definitive list" once and for all!

I think I'm just going to buy it anyway. The treasury website says its up to me to determine what is a "qualified medical expense" and I think it is. For God's sake I'm only wearing to prevent a sunburn and skin cancer!

ETA -- here is the link to the CIGNA list:

http://www.cigna.com/our_plans/medical/fsa/fsa_health.html

Again, if CIGNA can do this, why can't the IRS? What is so difficult?

 

[Nancy]

Wageworks also says over 30 SPF. I would say go ahead and try it, the worst they can do is deny the expense.

 

[laurie31]

Awesome! I'm going to try it too!

Perfect timing as I was going to go stock up on sunscreen for the summer next week.

 

[bgirldeb]

Thanks for posting this question! I would have said 'no' if I had to guess, but I checked our Health FSA info, and here is what it says;

Sunscreen with high SPF (e.g., 30 or 45) generally is used to prevent a sunburn; although not addressed in IRS guidance, we believe it would qualify as medical care. Items like face lotion that contain a small sunscreen component do not qualify, nor do suntan lotions.

This is great, because sunscreen can get pretty expensive!

 

[golfgal]

Even if it is eligible I wouldn't use HSA money for that. If possible, don't spend your HSA money at all, especially if an employer is funding that for you. That money grows tax free and can be used tax free. It is a great way to save for health insurance premiums when you retire, along with many other medical things like Long Term Health Care insurance premiums .

 

[GraysMom]

When I called our FSA company with this question, they told me it would be eligible for reimbursement IF a doctor wrote a prescription for it (I'm assuming my dermatologist would write it for my fair skin and skin cancer prevention).

 

[Jen_in_NH]

I've used our flexible spending account before to buy the high SPF sunscreen, as well as the baby sunscreen, and they both went through.

As far as saving it year to year, ours is funded by my employer, and what we don't use at the end of the year goes back to them. Most employees can be found at Rite Aid at the end of the year stocking up on bandaids, Tylenol, etc

 

[golfgal]

I've used our flexible spending account before to buy the high SPF sunscreen, as well as the baby sunscreen, and they both went through.

As far as saving it year to year, ours is funded by my employer, and what we don't use at the end of the year goes back to them. Most employees can be found at Rite Aid at the end of the year stocking up on bandaids, Tylenol, etc

A flexible spending account and a health savings account are two different things. If you have a HSA and an employer funds the account they CAN'T take the money back at the end of the year. With a Flex Spend account, you elect to have a portion of your income taken out of your check pre-tax to use that year for medical expenses, what you don't use you lose. You have to have a plan that is a high deductible health plan to have an HSA. You can have anything for a flex spend account.

 

[PattnFmly]

Ours also has to be used by the end of the year or it rolls away! Just today I bought ibuprofen and sudafed because we were out of both. What I do is, keep a file for the calendar year, and as I buy things, like today, I tape the receipt to a white page and add the total to my itemized page. Then about a month before a WDW trip I fill out the form and get reimbursed! Extra WDW money without any pain! The years we don't go to WDW ... boo hoo ... I usually use it for Christmas money. Win win either way!

 

[Nancy]

Even if it is eligible I wouldn't use HSA money for that. If possible, don't spend your HSA money at all, especially if an employer is funding that for you. That money grows tax free and can be used tax free. It is a great way to save for health insurance premiums when you retire, along with many other medical things like Long Term Health Care insurance premiums .

I don't believe the HSA is able to be used for premiums, it follows the exact same guidelines as the FSA for remimbursement purposes. IE: what is allowed. Just checked my work stuff and it can be used for premiums in some cases...very limited. "certain exceptions do exist, including paying premiums while collecting Federal or State unemployment benefits, or paying COBRA continuation coverage through a former employer."

A flexible spending account and a health savings account are two different things. If you have a HSA and an employer funds the account they CAN'T take the money back at the end of the year. With a Flex Spend account, you elect to have a portion of your income taken out of your check pre-tax to use that year for medical expenses, what you don't use you lose. You have to have a plan that is a high deductible health plan to have an HSA. You can have anything for a flex spend account.

That is correct, plus an HSA can go with you if you leave your current employer even if they fund it for you. For example: my employer puts 1000.00 in my HSA, I also put in 1500.00 (we have a 2500.00 deductible). If I have money left after this year is up and deide o leave my employer I do not lose the money. FSA is a use it or lose it, funds even though you put the money in reverts to employer.

Ours also has to be used by the end of the year or it rolls away! Just today I bought ibuprofen and sudafed because we were out of both. What I do is, keep a file for the calendar year, and as I buy things, like today, I tape the receipt to a white page and add the total to my itemized page. Then about a month before a WDW trip I fill out the form and get reimbursed! Extra WDW money without any pain! The years we don't go to WDW ... boo hoo ... I usually use it for Christmas money. Win win either way!

That is an FSA account.


the HSA is a much better option if your employer has it and if you have a HDHP, mainly because of it's portability and that you can put funds in other than what you elect in the beginning of the year. FSA can only get a change in funding for a life event change.

 

[golfgal]

I don't believe the HSA is able to be used for premiums, it follows the exart same guidelines as the FSA for remimbursement purposes. IE: what is allowed.



That is correct, plus an HSA can go with you if you leave your current employer even if they fund it for you. For example: my employer puts 1000.00 in my HSA, I also put in 1500.00 (we have a 2500.00 deductible). If I have money left after this year is up and deide o leave my employer I do not lose the money. FSA is a use it or lose it, funds even though you put the money in reverts to employer.



That is an FSA account.


the HSA is a much better option if your employer has it, mainly because of it's portability and that you can put funds in other than what you elect in the beginning of the year. FSA can only get a change in funding for a life event change.

I am 100% positive that your HSA money can be used at retirement to pay your medical insurance premiums and can be use any time to pay for long term care insurance premiums. Look it up. A HSA does not follow the exact same guidelines as a flex spend, especially after retirement. You can also use HSA money to pay for an assisted living facility, etc. You can put $5950/family in an HSA with a $1000 catch up amount after age 50. It is a pretty sweet plan if you use it right. At age 65 and older you can use the HSA money for other things besides medical expenses but that would then be taxed.

edit-you can also do a one time roll-over from an IRA into an HSA-which is also a sweet benefit of an HSA plan.

 

[Free4Life11]

Even if it is eligible I wouldn't use HSA money for that. If possible, don't spend your HSA money at all, especially if an employer is funding that for you. That money grows tax free and can be used tax free. It is a great way to save for health insurance premiums when you retire, along with many other medical things like Long Term Health Care insurance premiums .

I know that, but by the time I retire I think the HSA rules will be totally different. I wouldn't be surprised if they take away the tax advantaged status in the future.

 

[golfgal]

I know that, but by the time I retire I think the HSA rules will be totally different. I wouldn't be surprised if they take away the tax advantaged status in the future.

So, then if they talk about taking away the tax advantage you use it for medical care and be done with it otherwise you can use it for whatever you want, a Disney vacation even, you just have to pay the tax on whatever you use that isn't qualified medical expenses. That is even an option today. You aren't out anything if you do that.

 

[Nancy]

I am 100% positive that your HSA money can be used at retirement to pay your medical insurance premiums and can be use any time to pay for long term care insurance premiums. Look it up. A HSA does not follow the exact same guidelines as a flex spend, especially after retirement. You can also use HSA money to pay for an assisted living facility, etc. You can put $5950/family in an HSA with a $1000 catch up amount after age 50. It is a pretty sweet plan if you use it right. At age 65 and older you can use the HSA money for other things besides medical expenses but that would then be taxed.

edit-you can also do a one time roll-over from an IRA into an HSA-which is also a sweet benefit of an HSA plan.

I'm going to research this tomorrow at the office, I work with a company that administers HSA accounts and also FSA acounts. We are told that they (HSA) can not be used for premiums. We also administer RMSA accounts which are for premiums once you retire. I am curious now so I'll be researching big time tomorrow, I only have access to so muh here from home. I'd like to know this to make sure we are telling our customers the correct thing when they call and ask, right now our SOPS say no premiums. Should clarify that yes, long term care medical expenses and premiums are allowed with the HSA, I do know that to be correct.

 

[PattnFmly]

I've never even heard of an HSA account, and I read my benefit package through cover to cover every year. Maybe we don't have one? I'll have to check tomorrow when I can get to the whole website, they don't allow us full access from home computers, only work ones. I know what I'll be doing when I have my morning tea!