Cosmetic procedures are not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Are Cosmetic Procedures Not FSA/HSA Eligible?
Cosmetic procedures are treatments or surgeries performed to improve appearance rather than to diagnose, treat, or prevent a medical condition. Examples include facelifts, liposuction, and breast augmentation for cosmetic reasons. Because these procedures are intended for aesthetic enhancement, they do not qualify as medical care under IRS Code Section 213(d).
According to IRS Publication 502, cosmetic surgery and related expenses are not eligible unless the procedure is necessary to improve a deformity arising from a congenital abnormality, personal injury, or disfiguring disease.
What’s Not Covered?
Elective cosmetic surgeries such as facelifts, liposuction, or tummy tucks
Botox injections for wrinkle reduction
Hair transplants or other appearance-related treatments
Cosmetic dental procedures such as teeth whitening or veneers
LMN and Exceptions
Cosmetic procedures are not eligible under normal circumstances, even with a Letter of Medical Necessity (LMN). However, exceptions may apply if a procedure is performed to restore function, correct a deformity, or treat damage caused by trauma or disease. Examples include:
Reconstructive surgery following an accident or injury
Surgery to correct a birth defect (such as cleft palate repair)
Procedures needed to treat disfigurement caused by a medical condition
In such cases, detailed medical documentation and a Letter of Medical Necessity are required, and only the medically necessary portion of the procedure may be reimbursable. Always confirm with your plan administrator before pursuing reimbursement.
