Drugs and Medicines: FSA Eligibility

Drugs and Medicines: eligible with a Flexible Spending Account (FSA)

Drugs and medicines are eligible with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Drugs and medicines reimbursement is not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

Over-the-Counter (OTC) Drugs and Medicines

Today, a huge variety of over-the-counter (OTC) medicines are sold in grocery stores, supermarkets and pharmacies throughout the U.S. that can treat a wide range of potential ailments. Everything from analgesics (pain relievers) to antacids to antihistamines have historically been covered by consumer-directed healthcare accounts, but until the passage of the CARES Act in March 2020, over-the-counter medicines required a prescription to purchase with an FSA/HSA.

But thanks to the CARES Act, OTC drugs and medicines are now fully eligible for purchase with tax-free healthcare dollars. In most cases, products that are used to treat medical conditions would be fully covered, but there are some exceptions for vitamins, supplements and other products, so account holders should always check with their benefits administrator to see if their plans cover specific types of over-the-counter medication. 

For any additional questions regarding a product's eligibility, feel free to explore our Eligibility List.

Prescription Drugs and Medicines (Rx)
In addition to drugs and medicines available over-the-counter, tax-free healthcare funds can also be used to cover the cost of prescription drugs and medicines to treat a wide range of potential health issues. 

Looking to check the eligibility of something else? Thousands of products and services qualify!

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Check out these FSA Eligible Categories