Colored contacts are prescription medical devices. That means they can be eligible for insurance coverage, FSA, or HSA reimbursement — but only under specific conditions.
Here is what you need to know before submitting an insurance claim or swiping your FSA card.
Vision Insurance: Sometimes Covered
Vision insurance plans like VSP and EyeMed typically cover a portion of the cost of medically necessary contact lenses. “Medically necessary” usually means lenses that correct a vision problem that glasses cannot adequately address — high myopia, astigmatism above a certain threshold, or irregular corneas that require specialty lenses.
Cosmetic colored contacts worn purely to change eye color are generally not covered by vision insurance. Colored contacts that also correct myopia — for example, a pair of Berry Grey lenses in -2.00 — may be partially covered under your plan’s contact lens allowance. Ask your eye doctor to code the prescription appropriately for your insurance provider. If they code it as “medically necessary contact lenses,” your insurance may cover part of the cost. If they code it as “cosmetic lenses,” it will almost certainly be denied.
FSA and HSA: Usually Covered
Flexible Spending Accounts and Health Savings Accounts are broader than vision insurance. The IRS allows FSA and HSA funds to be used for “prescription medical devices,” which includes prescription contact lenses of any kind — colored or clear. The key word is prescription. If you have a valid contact lens prescription, even for plano lenses, colored contacts generally qualify as an eligible FSA/HSA expense.
Keep your receipt and your prescription. If the IRS or your FSA administrator asks for documentation, you need to show that the lenses were prescribed by a licensed professional. A receipt alone is not enough — you also need the prescription that authorized the purchase. Read more about prescription requirements here.
The Tax Deduction Question
Contact lenses can be deducted on your federal taxes as a medical expense, but only if you itemize deductions and only to the extent that your total medical expenses exceed 7.5% of your adjusted gross income. For most people, this threshold is not met. Colored contacts bought for cosmetic reasons and not prescribed by a doctor do not qualify.
Bottom Line
Check your vision insurance plan for a contact lens allowance. Use your FSA or HSA funds if you have them. Keep your prescription documentation. And if the lenses are purely cosmetic, budget for them out of pocket — at $9.90 per pair for Yilala lenses, the cost is manageable for most people. Browse prescription-compatible lenses.