Yes, medical operations are eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when they are performed to treat or diagnose a specific medical condition.
Why Are Medical Operations FSA/HSA Eligible?
Under IRS Code Section 213(d), expenses for surgeries and medical procedures are eligible when they are performed by or under the direction of a licensed medical professional and are intended to diagnose, treat, mitigate, or prevent a disease or medical condition. This includes both inpatient and outpatient operations.
According to IRS Publication 502, a wide range of medically necessary surgeries and procedures qualify for reimbursement using FSA or HSA funds, from minor outpatient procedures to major surgical operations.
FSA- and HSA-eligible medical operations may include:
Appendectomies, hernia repairs, and gallbladder removal
Orthopedic surgeries (e.g., joint replacement, fracture repair)
Cardiovascular surgeries (e.g., bypass surgery, pacemaker implantation)
Neurological procedures (e.g., brain surgery, spinal procedures)
ENT surgeries (e.g., tonsillectomy, sinus surgery)
Reproductive surgeries (e.g., tubal ligation, vasectomy, hysterectomy)
Medically necessary bariatric surgery
- Other surgeries performed for diagnostic or treatment purposes
What’s Not Covered?
The following are not eligible:
Cosmetic surgeries or procedures done to improve appearance without a medical need
Elective procedures not tied to a diagnosed condition
Experimental procedures not approved or prescribed by the medical community
Non-itemized charges or bundled services without medical documentation
Surgeries performed solely for lifestyle, personal preference, or general wellness
To qualify, the operation must be medically necessary and performed by a licensed provider.
How to Use Your FSA or HSA for Medical Operations
You can use your FSA or HSA card to pay for qualifying surgical expenses directly through your healthcare provider, hospital, or outpatient facility. If you pay out of pocket:
Request an itemized invoice from your provider
Ensure the procedure is documented as medically necessary and performed by a licensed provider
Submit documentation and receipts to your plan administrator for reimbursement
For additional details, consult IRS Publication 502.
