No, dandruff shampoo is not a universally eligible Flexible Spending Account (FSA) or Health Savings Account (HSA) expense. However, it may be eligible when accompanied by a Letter of Medical Necessity (LMN).
Why Is Dandruff Shampoo Not FSA/HSA Eligible?
Dandruff shampoo is generally not eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA) because it is considered a personal care product rather than a medical necessity. Under IRS guidelines, FSA and HSA funds can only be used for products that diagnose, treat, or manage a specific medical condition.
While dandruff can cause discomfort, it is typically viewed as a cosmetic concern rather than a medically significant condition. However, if dandruff results from a diagnosed medical issue such as seborrheic dermatitis, psoriasis, or eczema, a dandruff shampoo specifically prescribed to manage that condition may qualify for reimbursement. A Letter of Medical Necessity (LMN) from a healthcare provider would be required to substantiate its use.
How to Purchase Dandruff Shampoo With FSA/HSA Reimbursement
Living with dandruff can be unpleasant. At the same time, it’s typically not a medical concern and not eligible for FSA/HSA reimbursement unless your dandruff is disease-related, such as with eczema, psoriasis, and seborrheic dermatitis. If a medical condition causes your dandruff, consult your medical professional and ask for an LMN describing your condition and why you need FSA/HSA-approved dandruff shampoo.
Contact your FSA/HSA provider for approval, then shop for your product. Go to your usual online outlet, browse the dandruff shampoo selection and add your picks to the cart. At checkout, supply your FSA/HSA card information to pay.
Alternatively, enter your regular credit card details to make an out-of-pocket payment. Claim your expense by submitting your payment receipt and LMN to your FSA/HSA provider. Keep copies on file in case more documentation is needed. For a successful claim, include the following details:
Name of the provider
Date of purchase/service rendered (note that for services, they must be rendered within the plan year for FSAs)
Description of items/services rendered
Itemized list of products purchased with UPCs (if purchasing items at a retailer that doesn’t accept FSA cards or if using a regular credit card)
Total amount of purchase
