What can an individual use their medical flexible spending account to pay for?

An individual can use their medical flexible spending account (FSA) to pay for prescription drugs because these expenses are considered qualified medical expenses under IRS guidelines. FSAs are designed to help employees save on healthcare costs by allowing them to contribute pre-tax dollars to cover eligible medical expenses, including prescription medications necessary for treating a medical condition.

Prescription drugs are a central part of medical treatment and directly relate to maintaining health and treating illnesses, making them eligible for reimbursement through an FSA. Medical FSAs aim to alleviate the financial burden of healthcare costs, and covering prescription drugs is a key feature that supports this goal.

In contrast, while over-the-counter medications have become eligible in certain situations thanks to changes in regulations, they often require a prescription to be reimbursed through an FSA, limiting their straightforward eligibility. Routine dental cleanings are usually eligible expenses as well, but the context of the question focuses on prescription drugs as the most direct answer. Cosmetic procedures do not qualify since they are often considered elective and not medically necessary, hence they are excluded from FSA reimbursement.