Question: Due to a medical condition during 2020, Scarlet’s doctor advised her to use a specific type of menstrual product but did not issue Scarlet a prescription. May Scarlet pay for the non-prescribed menstrual product with her qualified HSA funds?
Answer: Yes. Effective after Dec. 31, 2019, the CARES Act changed the HSA rules for expenses incurred and amounts paid for tax-free distributions from an HSA. The Act both repealed the prescription requirement for over-the-counter medicine or drugs and updated the definition of qualified medical expenses. For HSA purposes, amounts paid for menstrual care products shall now be treated as paid for medical care and thus a qualified medical expense [§223(d)(2)(A)]. Menstrual care products are defined as a tampon, pad, liner, cup, sponge or similar product used by individuals with respect to menstruation or other genital-tract secretions [§223(d)(2)(D) as amended by Act Sec. 3702(a)(2)].
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.