Cosmetic prescription drugs?

[Lori Friedman]

First, FSA distributions are limited to Sec. 213 deductible medical expenses plus over-the-counter drugs [sec. 105(b)].

Second, prescription drugs are deductible medical expenses -- legally-procured substances that require a prescription for use by an individual [sec. 213(d)(3); Reg. Sec. 1.213-1(e)(2)].

Third, cosmetic expenses -- surgeries or procedures to improve appearance, not to promote wellness or prevent or treat a disease or illness -- are nondeductible [sec. 213(d)(9)(B)].

Ok...the law's very clear so far. But, what's your opinion about medications prescribed by a physician for cosmetic reasons? Common examples include drugs to improve skin tone or to stop or prevent hair loss.

These medications are certainly prescription drugs, but are they also nondeductible cosmetic "procedures" and, therefore, nonreimbursable under a FSA? I've been unable to find an answer to this question. Certainly, my instincts scream that Propecia isn't tax-deductible, but does the letter of the law suggest otherwise?

[papogi]

Even though OTC drugs are allowed under flex, the overriding principle that the item must be used for medical reasons (diagnosis, cure, mitigation, etc of disease, or to improve function of the body, etc.) still applies. OTC cosmetics and hair regrowth products would not be covered.