Yes, transplants are eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when they are medically necessary and performed by licensed healthcare providers.
Why Are Transplants FSA/HSA Eligible?
Organ and tissue transplants are considered qualified medical expenses under IRS Code Section 213(d) because they are performed to treat or cure a specific medical condition, often saving or extending a patient's life. These procedures typically involve significant pre-operative evaluation, surgery, hospitalization, and post-operative care—all of which are eligible.
According to IRS Publication 502, the cost of a transplant is an allowable expense, including related costs for both the recipient and the donor.
FSA- and HSA-eligible transplant expenses may include:
Organ or tissue transplant surgery (e.g., kidney, liver, lung, bone marrow)
Hospital fees and surgeon costs
Pre-transplant medical evaluations and testing
Post-operative care and medications
Travel and lodging for the patient (and potentially a companion), when primarily for medical care and meeting IRS criteria
- Donor medical expenses if not reimbursed by another source
What’s Not Covered?
The following are not eligible:
Transplants for cosmetic or elective purposes
Travel or lodging costs that do not meet IRS standards (e.g., luxury accommodations, excess mileage)
Lost wages for the donor or recipient
Fees paid to arrange for organ matching unless they are part of a qualified transplant program
Non-medical services provided to donor or recipient
Eligibility requires the transplant to be medically necessary and conducted through approved healthcare channels.
How to Use Your FSA or HSA for Transplants
To use your FSA or HSA to pay for a transplant or related services:
Use your FSA/HSA card to pay medical bills directly, or submit for reimbursement
Maintain itemized documentation including dates of service, type of transplant, and provider details
Track related travel and lodging costs to see if they meet IRS eligibility standards
If paying for donor expenses, ensure they are not reimbursed by other sources
For detailed eligibility guidance, refer to IRS Publication 502.
