No, melatonin is not generally eligible for Flexible Spending Account (FSA) or Health Savings Account (HSA) expenses. However, it may be eligible when accompanied by a Letter of Medical Necessity (LMN).
Why Is Melatonin Not FSA/HSA Eligible?
Melatonin is generally not eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA) because it is classified as a dietary supplement.
Under IRS guidelines, FSA and HSA funds can only be used for products or services that are medically necessary to treat, diagnose, or manage a specific health condition. Since melatonin is often used for general wellness or to support healthy sleep patterns, it does not meet the criteria for medical necessity unless prescribed for a diagnosed condition.
Melatonin may qualify for FSA/HSA reimbursement if a healthcare provider determines it is medically necessary to treat a specific condition, such as chronic insomnia or a sleep disorder. In such cases, a Letter of Medical Necessity (LMN) would be required to justify its use and eligibility.
How to Purchase Melatonin With an FSA/HSA
If your doctor determines that melatonin is medically necessary for treating a diagnosed condition, you can use your FSA or HSA funds by following these steps:
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Obtain a Letter of Medical Necessity (LMN):
Consult your healthcare provider about your condition and discuss whether melatonin is necessary for treatment.
Request an LMN that outlines your diagnosis, the reason for prescribing melatonin, and its role in your treatment plan.
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Confirm Approval with Your FSA/HSA Provider:
Submit the LMN to your FSA or HSA administrator for review and approval before making your purchase.
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Purchase Melatonin:
Use your FSA or HSA card to buy melatonin at a retailer that accepts these payment methods.
If the retailer does not accept FSA/HSA cards, pay out-of-pocket and save your receipt for reimbursement.
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Submit a Reimbursement Request:
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If you pay out-of-pocket, provide your FSA/HSA administrator with the following documentation:
A copy of the LMN.
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The receipt, including:
Name of the retailer or provider.
Date of purchase (must fall within the plan year for FSAs).
Description of the product purchased.
Itemized details with UPCs, if applicable.
Total cost of the purchase.
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Retain Documentation:
Keep copies of your LMN and receipts in case additional verification is required.
By ensuring melatonin is tied to a specific medical need and providing proper documentation, you can effectively use FSA or HSA funds to support your treatment. Always confirm eligibility with your FSA/HSA provider to avoid reimbursement issues.
