No, collagen is not a universally eligible Flexible Spending Account (FSA) or Health Savings Account (HSA) expense. However, it may qualify when accompanied by a Letter of Medical Necessity (LMN).
Why Is Collagen Not FSA/HSA Eligible?
Collagen supplements are not typically eligible for reimbursement under a Flexible Spending Account (FSA) or Health Savings Account (HSA) because they are generally classified as dietary supplements. According to IRS guidelines and SIGIS standards, FSA and HSA funds can only be used for products that treat, diagnose, or manage a specific medical condition.
Collagen supplements, often marketed for improving skin health, joint function, and general wellness, are considered dual-purpose products and do not meet the "but for" test, meaning they would not have been purchased exclusively to treat a diagnosed condition.
Exceptions: When Collagen May Be FSA/HSA Eligible
Collagen may qualify for FSA/HSA reimbursement if prescribed by a healthcare provider to address a specific medical condition. Examples include:
Osteoarthritis: Collagen supplements may help reduce joint pain and improve function in individuals with osteoarthritis.
Bone Loss: Collagen can be recommended as part of a treatment plan for conditions like osteoporosis or to improve bone density.
Wound Healing: In certain cases, collagen supplementation may support recovery from surgery or injuries.
In such instances, a Letter of Medical Necessity (LMN) is required to validate the medical purpose of the product. The LMN must outline the condition being treated and explain why collagen is an essential part of the treatment plan.
How to Buy Collagen With an FSA/HSA and an LMN
If your healthcare provider determines that collagen supplements are medically necessary, follow these steps to purchase them using your FSA or HSA:
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Consult Your Doctor:
Discuss your condition and determine if collagen is appropriate for treatment.
Request an LMN that specifies your diagnosis, why collagen is necessary, and how it supports your treatment plan.
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Verify Eligibility:
Submit the LMN to your FSA or HSA administrator to confirm that collagen qualifies for reimbursement under your plan.
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Make the Purchase:
Use your FSA/HSA card to purchase collagen at an eligible retailer.
If the retailer does not accept FSA/HSA cards, pay out-of-pocket and retain your receipt.
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Submit for Reimbursement:
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If paying out-of-pocket, provide your FSA/HSA administrator with the LMN and receipt. The receipt should include:
Name of the retailer/provider.
Date of purchase (must fall within the FSA plan year).
Description of the product purchased.
Itemized list of products with UPCs if required.
Total purchase amount.
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Keep Documentation:
Retain copies of your LMN and receipts for your records in case additional documentation is requested.
By adhering to these steps and providing the necessary documentation, you can potentially secure FSA/HSA reimbursement for collagen supplements if they are deemed medically necessary. Always confirm eligibility with your FSA/HSA provider before making a purchase.
