Yes, dermatology treatment is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) — but only when the services are provided to treat a medical condition.
While many dermatologist visits and procedures qualify, popular services like cosmetic treatments do not. It’s important to understand which types of care are eligible before using FSA or HSA funds.
Why Is Dermatology Treatment FSA/HSA Eligible?
Dermatology treatment qualifies as a reimbursable expense under IRS Code Section 213(d) when it is intended to diagnose, treat, or manage a specific medical condition, such as acne, eczema, psoriasis, rashes, or skin cancer.
According to IRS Publication 502, medical services that are primarily for the prevention, diagnosis, or treatment of disease are eligible for reimbursement. Dermatology services fall into this category only when they are medically necessary and not cosmetic in nature.
FSA- and HSA-eligible dermatology services may include:
Evaluation and treatment of acne, eczema, psoriasis, rosacea, or fungal infections
Skin cancer screenings, biopsies, and treatments
Wart or mole removal (when medically necessary)
Treatment of rashes, allergic reactions, or other diagnosed skin disorders
Prescription medications and topical treatments
- Light therapy or other FDA-approved procedures for chronic skin conditions
What’s Not Covered?
The following are not eligible:
Cosmetic services such as Botox for wrinkles, chemical peels, or microdermabrasion
Removal of skin tags, moles, or scars done solely for appearance
Laser hair removal or laser treatments for cosmetic skin resurfacing
Skincare products purchased without a prescription, even if dermatologist-recommended
General spa services or facials, even when performed in a dermatology clinic
In short: only treatments that address a medical condition are eligible. Cosmetic and elective services do not qualify, even if provided by a licensed dermatologist.
How to Use Your FSA or HSA for Dermatology Treatment
You can use your FSA or HSA card for dermatology treatments at clinics or medical offices when the care is for a qualifying condition. If paying out of pocket:
Request an itemized receipt listing the diagnosis and procedures performed
Keep any supporting documentation, such as a referral or prescription from your provider
Submit claims to your FSA or HSA administrator for reimbursement as needed
For full eligibility details, see IRS Publication 502.
