Diapers (Infant): FSA Eligibility

Diapers (Infant): reimbursement is not eligible with a Flexible Spending Account (FSA)
Diapers are not eligible for reimbursement with flexible spending accounts (FSA), health savings accounts (HSA), health reimbursement arrangements (HRA), dependent care flexible spending accounts (DCFSA) or limited-purpose flexible spending accounts (LPFSA). However, in some cases, they are eligible to alleviate the effects of a particular disease or medical condition (e.g., an older child with brain defects [i.e., Aicardi Syndrome]). In addition, adult diapers are eligible as treatment for incontinence.

Why are diapers not eligible for reimbursement?

Items that are eligible for reimbursement under a consumer-directed healthcare account must be primrily for the diagnosis, mitigation, or treatment of a specific medical condition or affect a structure of function of the body. The IRS views infant diapers as products that are necessary for "general health" purposes, as incontinence is a normal and healthy function of the body for an infant and therefore ineligible for reimbursement.

As mentioned above, there are some cases where diapers, be they for use by babies, children or adults, can be eligible for reimbursement. Diapers for older children and adults are eligible for reimbursement because they are used to treat the symptoms of an underlying medical condition - generally incontinence. In these cases, it's best to check with a benefits administrator to explain the full scope of the issue and seek guidance about possible next steps.

If the medical issue has symptoms that require diapers to treat the condition, these items may be eligible for reimbursement with a Letter of Medical Necessity (LMN) from a medical professional. These letters must contain a specific diagnosis and details about how the treatment will be used to alleviate the condition. Lastly, LMN must outline how long this treatment will last and another LMN must be submitted if the treatment exceeds the current plan year.

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