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Best Places to Buy FSA Eligible Products

By: Author Francis Walshe

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Best Places to Buy FSA Eligible Products
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The FSA program is a classic case of “use it or lose it.” If you’re nearing the end of your grace period and you’re wondering where you can spend all those tax-free dollars you’ve squirrelled away over the past year, I’ve got you covered. 

A Quick Refresher on FSAs

FSA

A Flexible Spending Account (FSA) is an employer-provided tax-free savings account you can use on certain out-of-pocket healthcare costs. You can make monthly deposits into this account up to a prescribed annual limit and spend these funds on approved expenses. For a product to be FSA-eligible, it must be used primarily for the diagnosis, treatment, or prevention of a medical condition. Cosmetic or general wellness items typically don’t qualify unless prescribed by a doctor who provides a letter of medical necessity (LMN).

There are certain catches to be aware of with FSAs. Firstly, as alluded to above, you cannot roll FSA funds over from one year to the next. If you don’t spend the money you’ve saved by the end of the year (or by the end of the grace period, if your account offers one), you lose it. This, by the way, is not the case with HSAs, which let you carry funds forward indefinitely, and even invest them in some cases. 

Additionally, the IRS rules on eligibility can be complex. For this reason, I’d recommend going with a retailer that specializes in FSA-eligible products; it just makes the whole process a bit smoother. 

You should also get an FSA debit card and buy from stores that accept them. These cards let you spend directly from your FSA balance, rather than paying out of pocket and claiming the money back later. As with many IRS processes, this can be an administrative headache, so it’s to be avoided if possible. 

Best Places to Buy FSA Eligible Products

1. FSA Store (for Convenience and Selection)

FSA

FSA Store is my go-to when I’m looking for eligible products for a few reasons. First and foremost, though, is the fact that everything on the site is FSA-eligible. If you’ve been using FSAs for a while, you’ll understand how big a deal this is. Even though big online retailers have recently been doing a better job of highlighting their eligible offerings, trying to figure out what does and does not qualify can still be a pain. You won’t need to worry about that here. 

FSA Store also has an extensive line of eligible products, including plenty of items you might not have known would qualify (prescription sunglasses, baby monitors, over-the-counter medications, etc.). The store also accepts FSA debit cards.

The chief drawback of FSA Store is its prices. Compared to some competitors (which are discussed below), it does charge a premium on some eligible items. For me, though, this is a case of getting what you pay for; you won’t find the same level of convenience with any other retailer I’ve used.  

2. Amazon (for Bargains)

From streaming to security, there are few industries this corporate monolith isn’t involved in by now. Amazon’s sheer size allows it to be more price-competitive than every other retailer most of the time, and it’s no exception when it comes to FSA-eligible items. If you’re on the hunt for the best bargains you can find, this is the place for you. 

Also, if you’re a Prime subscriber, you’ll be able to get free next-day delivery for even the smallest of purchases; other stores on this list have minimum spends for free delivery, which isn’t always ideal. 

However, what Amazon makes up in cost, it loses in convenience. Even though the website has a dedicated FSA- and HSA-eligible section these days, it’s not always reliable. Also, there have been reports from disgruntled Redditors that FSA debit cards don’t always work at the Amazon checkout. 

3. CVS (for In-Store Shopping)

If you prefer in-store shopping, CVS is the way to go in my book. The major pharmacy chains all offer an FSA-eligible line of products, and they all generally do a good job of highlighting the products that qualify for the scheme. If you prefer shopping at Walgreens, you’ll find all the same FSA-eligible items there, give or take.

CVS also offers FSA-eligible products online, but the other retailers I’ve mentioned in this article are better options if you’re shopping on the internet. CVS outlets generally accept FSA debit cards, as does the online store. 

4. Optum Store (If You’re Insured Through UnitedHealthcare)

Optum‘s online store provides a range of health-related products, many of which are FSA-eligible. 

Optum’s big selling point is its integration of FSA management with other healthcare services. If you’re already insured through UnitedHealthcare or using OptumRx for prescriptions, it’s all connected. That means fewer headaches when it comes to submitting claims or syncing up with your benefits.

However, the selection isn’t quite as deep or varied as what you’d find on a site like FSA Store or in Amazon’s FSA-eligible section. Think of it more as a curated essentials shop rather than an FSA superstore. I think it’s much easier to do all your FSA-eligible shopping in one place, so I wouldn’t personally use Optum for that reason. 

Final Thoughts

If you’re using an FSA, there are some steps you should take to ensure you make the most of it:

  • Plan ahead: FSAs only allow you to save money if you spend it in time; if you let the deadline pass or end up panic-spending on unnecessary items as the deadline looms, it’s only another expense (and a pretty pointless one at that). Don’t wait until the last minute.
  • Keep receipts: Always save records of what you’ve bought. If you don’t use an FSA debit card to make your purchases, you may require proof of purchase for reimbursement (depending on how much of a stickler your FSA administrator is).
  • Know what’s eligible: Familiarize yourself with the list of FSA-eligible items. Some surprising products (like sunscreen and certain over-the-counter medications) qualify.

While it can be a little confusing, the FSA system is a great way for the budget-conscious consumer to keep more of their hard-earned dollars. And, at a time when the cost of everything is shooting up, who doesn’t enjoy saving some money? Happy shopping!