Yes, over-the-counter (OTC) medicine is eligible for purchase with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Is Over-the-Counter Medicine FSA/HSA Eligible?
OTC medicines are used to treat a wide range of diagnosed conditions such as pain, cold and flu symptoms, allergies, heartburn, and digestive issues. Because these medications contain active medicinal ingredients and are intended for the treatment of specific health conditions, they qualify as eligible medical expenses under IRS Code Section 213(d).
The CARES Act of 2020 made OTC medications fully FSA- and HSA-eligible without a prescription.
According to the SIGIS Eligible Product List Criteria, any medication containing an active medicinal ingredient and labeled for the treatment of a medical condition is eligible.
Common categories of FSA- and HSA-eligible OTC medicine include:
Pain relievers (e.g., acetaminophen, ibuprofen, aspirin)
Cold and flu medicine (e.g., dextromethorphan, guaifenesin, phenylephrine, diphenhydramine)
Allergy relief (e.g., loratadine, fexofenadine, cetirizine)
Heartburn and acid reducers (e.g., famotidine, omeprazole, calcium carbonate)
Anti-diarrheal and laxatives (e.g., loperamide, bismuth subsalicylate, senna)
Motion sickness medicine (e.g., meclizine, dimenhydrinate)
Topical creams and ointments for skin irritation, pain, or itching (e.g., hydrocortisone, lidocaine)
These products are eligible as long as they are used to treat a specific medical condition and include an active ingredient.
What’s Not Covered?
OTC products that are cosmetic, general wellness-focused, or do not contain an active medicinal ingredient are not eligible. This includes:
Vitamins, herbal supplements, and homeopathic remedies without a National Drug Code (NDC)
Energy drinks or “immune boosters”
Personal hygiene products without a medical claim
Cosmetics, scented lotions, or items marketed for comfort only
To qualify, the product must clearly state a treatment purpose and contain a recognized active ingredient.
How to Buy Over-the-Counter Medicine with Your FSA or HSA
You can purchase eligible OTC medicine directly at buyFSA.com using your FSA or HSA card. Every product listed on buyFSA.com is verified as FSA- and HSA-eligible, so there’s no guesswork or reimbursement hassle.
If purchasing elsewhere:
Use your FSA or HSA card at checkout (in-store or online)
Confirm the product is labeled for medical use and contains an active ingredient
Save your receipt in case your plan administrator requests documentation
Avoid general-purpose or cosmetic items not tied to treatment
For more information, visit the SIGIS Eligible Product List Criteria.
