Yes, topical skin treatments are eligible for purchase with a Flexible Spending Account (FSA) or Health Savings Account (HSA), but only if they are used to treat a medical condition and contain an active medicinal ingredient.
Why Are Some Topical Skin Treatments FSA/HSA Eligible?
Topical treatments designed to relieve or treat diagnosed skin conditions such as eczema, acne, psoriasis, rashes, fungal infections, or dermatitis qualify as eligible medical expenses under IRS Code Section 213(d). To be eligible, the product must contain an active medicinal ingredient and be marketed for therapeutic use.
According to the SIGIS Eligible Product List Criteria, only skin care products that are used for medical treatment—not cosmetic or general care—are considered FSA- and HSA-eligible.
FSA- and HSA-eligible topical skin treatments typically include:
Hydrocortisone creams for itching and inflammation
Antifungal creams for athlete’s foot, ringworm, or jock itch (e.g., clotrimazole, miconazole, terbinafine)
Acne creams and gels (e.g., benzoyl peroxide, salicylic acid, adapalene)
Topical antibiotics for minor cuts and scrapes (e.g., bacitracin, neomycin)
Psoriasis and eczema treatments (e.g., coal tar, ceramide-based medicated moisturizers, colloidal oatmeal)
Antiviral cold sore creams (e.g., docosanol)
Burn creams with medicinal ingredients (e.g., lidocaine, aloe-based products labeled for burn treatment)
Eligibility is based on both the presence of an active medicinal ingredient and the product's intended use for treating a medical condition.
What’s Not Covered?
Cosmetic or general skin care products are not eligible. This includes:
Moisturizers, lotions, or serums marketed for hydration, anti-aging, or beauty
Sunscreens not labeled for SPF protection (covered separately under sunscreen eligibility)
Scar creams, wrinkle reducers, or skin toners
Herbal balms, essential oil blends, or aromatherapy creams without active ingredients
Spa treatments or cosmetic peels
To qualify, the product must treat a diagnosed skin condition and be labeled for therapeutic use—not general skin maintenance or cosmetic improvement.
How to Buy Topical Skin Treatments with Your FSA or HSA
You can purchase eligible topical skin treatments directly at buyFSA.com using your FSA or HSA card. Every item listed on buyFSA.com is verified as FSA- and HSA-eligible, so there’s no guesswork or reimbursement hassle.
If purchasing elsewhere:
Use your FSA or HSA card at checkout (in-store or online)
Ensure the product includes an active medicinal ingredient and is marketed to treat a specific skin condition
Save your receipt in case your plan administrator requests documentation
Avoid products marketed for beauty, comfort, or general hydration without a therapeutic claim
For more information, visit the SIGIS Eligible Product List Criteria.
