Moisturizers are typically not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA). However, medicated moisturizers used to treat a diagnosed skin condition may qualify with a Letter of Medical Necessity (LMN).
Why Are Moisturizers Not FSA/HSA Eligible?
Most moisturizers are considered personal care or cosmetic products intended to maintain or improve general skin appearance. Because they are not used to diagnose, treat, or prevent a specific medical 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 specifically to treat a diagnosed condition. General-use lotions, creams, and moisturizers marketed for hydration or beauty purposes are excluded.
What’s Not Covered?
Over-the-counter or luxury moisturizers for daily skincare
Beauty creams, serums, or anti-aging products
Moisturizers used for comfort, softness, or appearance
Non-medicated lotions or creams without active ingredients
Products purchased from cosmetic or beauty retailers
LMN and Exceptions
A moisturizer may qualify for reimbursement only if it meets both of the following conditions:
It contains a medically active ingredient (such as hydrocortisone or ceramide-based formulations prescribed for eczema or psoriasis).
It is prescribed by a physician to treat a specific diagnosed condition.
To pursue reimbursement:
Obtain a diagnosis from your healthcare provider.
Request a Letter of Medical Necessity (LMN) specifying the prescribed moisturizer and condition being treated.
Submit the LMN to your FSA/HSA administrator before purchasing.
Retain receipts, the LMN, and any related documentation for verification.
Only medicated or prescription-based moisturizers used for medical treatment are potentially eligible. General or cosmetic moisturizers remain ineligible.
