Is Lip Balm FSA Eligible?
Key takeaways:
Most cosmetic products cannot be bought with flexible spending account (FSA) money. But lip balm may be FSA eligible if it meets certain requirements.
The CARES Act expanded the list of FSA- and health savings account-eligible items to include over-the-counter products. Certain types of lip balm are now eligible.
Lip balm is typically FSA eligible if it contains a certain SPF, but plans can vary. It’s important to confirm the specific requirements with your FSA provider.
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Many people use lip balm every day to protect against dryness, chapped lips, and harsh weather. You may purchase it often without realizing how the costs can add up over time.
Thanks to the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, you can now use your flexible spending account (FSA) to buy certain over-the-counter products. The list includes some types of lip balm. But since an FSA is an employer-sponsored account, there are specific rules you’ll need to follow to receive reimbursement for your expenses.
Is lip balm eligible for FSA reimbursement?
Yes, lip balm may be eligible to buy using an FSA, but there may be specific requirements. For instance, your lip balm may need to have a sun protection factor (SPF) of 15 or higher to qualify. Products with SPF help prevent chapped lips caused by sun exposure and help protect against sunburn and UV damage.
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FSAs are tax-advantaged accounts designed to help cover certain medical expenses throughout the year. Qualified medical expenses are those that diagnose, cure, treat, or prevent illness or physical disability, including preventive care. If you experience severely chapped or dry lips, you may have a condition known as cheilitis. This could further support the use of lip balm as a qualified health expense.
It’s important to keep in mind that you cannot use a limited-purpose FSA (LPFSA) to pay for lip balm. An LPFSA is typically reserved for vision and dental expenses that are not covered by your insurance plan.
How to check if your lip balm is FSA eligible
Before buying lip balm with your FSA, it’s a good idea to confirm its eligibility. Here are a few steps to follow:
Contact your FSA provider: If you’re unsure if the lip product you plan to buy is FSA eligible, call your provider to find out. They can provide a list of approved items or clarify the eligibility of your purchase.
Consider the reason you are using it: Lip balms with medicinal ingredients or SPF are typically eligible if they’re used for health-related reasons like sun protection or treating chapped lips. Maintaining proper documentation is important.
Look for FSA-eligible labels: Many stores label products, in store and online, that qualify for FSA purchases. Look for these labels to make shopping easier.
Can I use my HSA for lip balm?
Yes, you can use your health savings account (HSA) to pay for qualified medical expenses, including eligible lip products. It’s a good idea to keep your receipts to prove its eligibility.
An HSA is a tax-advantaged account that lets you save money to pay for medical expenses. Unlike FSAs, the money in your HSA rolls over year after year, so you won’t lose any unused money at the end of the year. This means you have the flexibility to use your HSA to buy lip balm and other qualified medical items in the future.
Another difference between HSAs and FSAs is that HSAs are individually managed. FSAs are employer-sponsored accounts that require you to submit receipts for reimbursement of out-of-pocket expenses. But in general, you don’t need to submit receipts to your HSA provider for expenses. It’s still important to confirm eligibility of products and keep receipts on hand in case you are selected for an IRS audit.
Buy sunglasses with a flexible spending account (FSA): If you wear prescription sunglasses, you may be eligible to pay for them with your FSA dollars.
Do you need sunscreen? Your sunscreen may be FSA eligible if it meets these requirements.
Other ways to spend your FSA dollars: Here are ways to use your FSA funds for yourself, your spouse, or a qualified dependent.
How much does lip balm cost?
The cost of lip balm can range from a few dollars to significantly more for luxury brands. The price you pay can vary depending on several factors, including:
Ingredients: Lip balms that are organic or have special ingredients, like shea butter of SPF protection, may cost more than those that contain basic ingredients like petroleum jelly.
Brand: Established and luxury brands may charge more for marketing, reputation, and perceived quality.
Retail markup: Prices can vary depending on the retailer’s markup and where the product is sold.
Certifications: Products that are certified organic, cruelty free, or vegan may have higher costs to comply with standards.
Formulation: Your price will change if you buy medicated or flavored forms of lip gloss.
Location: You may pay more or less for lip balm based on where you live.
Some lip balms, especially those with medicinal or SPF properties, may be FSA eligible. But not all products qualify. It’s important to check with your FSA provider to see if the lip balm you’re considering meets the criteria for reimbursement.
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Popular lip balm brands considered FSA eligible
Here are a few lip products that may be FSA eligible, but check with your provider:
Blistex Lip Medex lip protectant
Burt’s Bees Medicated Moisturizing Lip Balm
Carmex Classic Lip Balm
ChapStick Classic Medicated Lip Balm
Herpecin L Lip Balm Stick
Sun Bum Original SPF 30 Sun Screen Lip Balm
Sun Bum Tinted Lip Balm SPF 15
Quantum Health Lip Clear Lysine+ Balm
If you have questions about the best ingredients or products for your needs, ask a healthcare professional. Keep in mind that not all retailers accept FSA cards, so you may need to pay out of pocket for some expenses and submit them for reimbursement.
Documenting expenses for FSA reimbursement
If your FSA provider offers a debit card, using it is the easiest way to pay for eligible medical expenses. It’s a quicker way to take advantage of your FSA account. In most cases, you won’t need to submit a receipt for reimbursement. But it’s still important to keep receipts because your FSA provider may need to validate that your expenses were eligible.
If you’re paying for FSA-eligible expenses out of pocket, here are a few extra steps you might need to take to get reimbursed.
Save your receipt: Whether you’re buying medicated lip balm to treat chapped lips or an SPF lip balm for sun protection, you’ll need to save the receipt. Consider taking a picture or scanning it to avoid losing your paper receipt. This will make it easier to upload it for reimbursement.
Check the reimbursement deadline: It’s best to submit your receipts right after making your purchase, but sometimes things get delayed. Check the submission deadline for your FSA provider to ensure you get reimbursed.
Confirm lip balm eligibility: Not every lip balm qualifies for FSA reimbursement. Products that contain SPF or have medicinal ingredients are usually eligible, but always verify before submitting your claim. Ask your FSA provider, and note the name of the representative you spoke with for your records.
Submit your claim: Once you have your receipt and confirmed that your lip balm is eligible, submit your claim through your FSA provider’s website or app. Most providers make it easy to upload a photo of your receipt and a claim form.
Track your reimbursement: Use your FSA provider’s app to check the status of your claim. If you’re submitting multiple expenses for reimbursement, it’s helpful to keep a record of your expenses and the date you were reimbursed. This way, you can avoid accidentally submitting the same receipt more than once.
Where to purchase FSA-eligible lip-care products
You can buy FSA-eligible lip-care products from major retailers, online and in store. Many stores label the packaging or product page to show which items are FSA eligible. For a broader selection, check out FSA-specific sites, like the FSA Store, which offers a variety of approved products. If you’re unsure whether a product qualifies, double-check with your FSA provider before buying.
The bottom line
You may be eligible to use your flexible spending account (FSA) to buy everyday products like lip balm to protect your lips from dryness and unfavorable weather conditions. Lip balms are generally inexpensive, unless you opt for a specialty brand-name product, so it can be an easy way to use remaining FSA money at the end of the year.
Before buying lip balm, review your FSA provider’s criteria for qualified medical expenses and reimbursement. If this information isn’t available on their website, ask a phone representative what’s covered.
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References
FSA Store. (n.d.). Lip balm (SPF 15+): FSA eligibility.
MedlinePlus. (2023). Cheilitis - actinic.
U.S. Food and Drug Administration. (2017). Sun protection factor (SPF).
