Hand lotions are typically not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA). In some cases, a medically necessary lotion prescribed by a physician may qualify with a Letter of Medical Necessity (LMN).
Why Are Hand Lotions Not FSA/HSA Eligible?
Most hand lotions and moisturizers are considered personal care products used for cosmetic or general skincare purposes, not medical treatment. Because they do not diagnose, treat, or prevent a specific condition, they do not qualify as medical care under IRS Code Section 213(d).
According to the SIGIS Eligible Product List Criteria, skin care products are only eligible when they contain an active medical ingredient and are used to treat a specific condition, such as eczema or dermatitis. Standard over-the-counter hand lotions and creams are excluded.
What’s Not Covered?
Regular or cosmetic hand lotions used for moisturizing or comfort
Over-the-counter lotions without active medicinal ingredients
Beauty or anti-aging creams
Moisturizers purchased for general use or appearance improvement
LMN and Exceptions
Hand lotions may qualify for reimbursement if they meet both of the following criteria:
The lotion is medicated and contains an active medical ingredient, such as hydrocortisone, for treating a specific skin condition.
A physician prescribes the product to treat a diagnosed condition like eczema, psoriasis, or chronic dermatitis.
To pursue reimbursement:
Obtain a diagnosis from your healthcare provider.
Request a Letter of Medical Necessity (LMN) specifying the prescribed lotion and medical purpose.
Submit the LMN to your FSA/HSA administrator before purchasing.
Retain all documentation, receipts, and approvals for your records.
General-purpose hand lotions remain ineligible, while medicated lotions prescribed for treatment may qualify with proper documentation.
