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Are OTC drugs, sunscreen and menstrual products eligible?

🩹 OTC drugs (aspirin, antacids, allergy)🩸 Menstrual care products🧴 Sunscreen (SPF 15+, broad spectrum)

These three categories share a single origin and a single, widely-missed catch. The CARES Act dropped the prescription requirement for over-the-counter drugs paid for after 31 December 2019, and added menstrual care products. Sunscreen rides along because it is an FDA monograph over-the-counter drug. All three are reimbursable. None of the three is deductible on Schedule A.

How the reference data classifies these categories

🩹 OTC drugs (aspirin, antacids, allergy)

Yes medical careYes card / claim deskNo Schedule AIRS authority

CARES Act §3702 dropped the prescription requirement for amounts paid after Dec 31 2019 — but it amended §223, not §213(d). So these are HSA/FSA-reimbursable and still not deductible on Schedule A. Don’t let an HSA list drive a Schedule A entry.

🩸 Menstrual care products

Yes medical careYes card / claim deskNo Schedule AIRS authority

Same CARES Act change. §223(d)(2) now treats amounts paid for menstrual care products as paid for medical care.

🧴 Sunscreen (SPF 15+, broad spectrum)

Yes medical careYes card / claim deskNo Schedule AIRS authority

Sunscreen is an FDA monograph OTC drug, so it rides the CARES Act rule — that part is IRS-based. The "SPF 15+ / broad spectrum" threshold is not in any IRS document; it comes from FDA labelling and card-substantiation coding.

Source: CARES Act §3702, Pub. L. 116-136 ↗ · custodian / plan-administrator practice — not IRS authority

Classification is at the expense-category level, comes from this project's HSA reference data, and is not a Magellan determination about any individual product. Your plan administrator decides what your plan reimburses.

The catch, stated plainly

CARES Act §3702 amended §223 — the section that governs health savings accounts. It did not amend §213(d) — the section that governs the itemised medical expense deduction. So the same bottle of aspirin is a qualified HSA distribution and is not a Schedule A medical expense. That is not a loophole or an oversight you can argue around; it is two different sections of the code reaching two different answers about one purchase.

The failure mode this produces is specific and common: someone uses an HSA eligibility list as a shopping list for their Schedule A. Do not do that. They are different lists.

The SPF 15 rule is not an IRS rule

Every eligibility list on the internet says sunscreen qualifies if it is SPF 15 or higher and broad spectrum. That threshold appears in no IRS document. It comes from FDA labelling and from the codes custodians use to substantiate card swipes. It is a real constraint on whether your card clears — it is simply not a tax rule, and it is worth knowing which of the two you are up against when a claim is declined.

Topicals: drugs on one shelf, cosmetics on the next

The catalogue's topical pain products carry an active ingredient and a strength in their names — diclofenac 1%, lidocaine 4%, capsaicin 0.1%, methyl salicylate with menthol. That is the shape of a Drug Facts panel. The reference data classifies the expense category "OTC drugs" as reimbursable without a letter; it does not adjudicate any individual product, and your administrator codes the specific item.

The rest of the skin shelf is a different question. Serums, retinoids and acids are not classified anywhere in this reference set, and administrator forms carry an attestation that the treatment is not cosmetic — which is the sentence doing the work. Treat those as unclassified and ask your administrator before you assume.

Where this lands in the catalogue

The topical analgesics below are the catalogue's over-the-counter drug products, and the sunscreen is the catalogue's one FDA monograph sunscreen. The classification above is at the expense-category level and is not a determination about any individual product.

Voltaren Arthritis Pain Gel (Diclofenac 1%)

17 PubMed citations · $25.59

Randomized trials and meta-analyses, including Cochrane reviews, indicate that topical…

Capzasin-HP Capsaicin 0.1% Pain Relief Cream

17 PubMed citations · $12

Randomized trials and meta-analyses show that topical capsaicin produces modest reductions in…

Aspercreme 4% Lidocaine Pain Relief Cream

22 PubMed citations · $13

The best-supported use of topical lidocaine is localized neuropathic pain, especially…

Biofreeze Menthol Pain Relief Gel

18 PubMed citations · $15.99

Menthol is used for the temporary relief of minor muscle and joint pain, including strains,…

Salonpas Pain Relieving Patch (Methyl Salicylate + Menthol)

18 PubMed citations · $16.97

Randomized trials of methyl-salicylate/menthol patches and menthol-based topical products…

Daily Mineral SPF Sunscreen

19 PubMed citations · $45

In a randomized community-based trial in Australia, adults assigned to daily sunscreen showed…

See all Topical Pain Relief →  ·  See all Skin & Topical Longevity →

What a letter can and cannot do here

No letter is needed here — the reference data records the card and claim-desk answer as yes for all three categories. A letter is the mechanism for the categories where the rules leave room and the default answer is no.

Whatever the category, three limits hold on every letter:

  • Submitting a letter is not approval. Your plan administrator makes the final call, and the IRS can look at it later.
  • A letter cannot make an ineligible expense eligible. It only documents medical necessity where the rules already leave room — protein powder stays out no matter who signs what.
  • Your own treating physician is the right person to ask, because they have the chart. That is not a formality; it is the whole basis on which the letter has any value.

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Education only — not tax, legal or medical advice. Magellan does not decide what your plan will reimburse, and Magellan does not write, sign, sell, review or arrange Letters of Medical Necessity. Eligibility depends on your own plan documents and your own circumstances: confirm with your plan administrator before you spend, and take tax questions to a tax professional. Figures on this page come from the IRS documents cited beside them; they change, so check the citation.