Shampoo is typically not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA). However, medicated shampoos prescribed to treat a diagnosed scalp or skin condition may qualify with a Letter of Medical Necessity (LMN).
Why Is Shampoo Not FSA/HSA Eligible?
Most shampoos are considered personal care products intended for hygiene, cleanliness, or cosmetic use. Because they are not used to diagnose, treat, or prevent a medical condition, they do not meet the definition of medical care under IRS Code Section 213(d).
According to the SIGIS Eligible Product List Criteria, personal care and grooming products like standard shampoo and conditioner are excluded from FSA/HSA eligibility unless they contain an active medical ingredient and are used for the treatment of a specific medical condition.
What’s Not Covered?
Over-the-counter shampoos and conditioners for general use
Beauty or salon-grade products for cleansing or styling
Dandruff shampoos purchased for cosmetic purposes only
Herbal, organic, or natural shampoos without an active medical ingredient
Haircare products marketed for volume, shine, or appearance
LMN and Exceptions
Certain medicated shampoos may qualify if they are prescribed by a physician to treat a diagnosed condition, such as:
Seborrheic dermatitis (dandruff or flaking scalp)
Psoriasis or eczema of the scalp
Fungal infections or other dermatologic conditions
Eligible products typically contain an active medical ingredient, such as:
Ketoconazole
Ciclopirox
Coal tar
Selenium sulfide
Zinc pyrithione (in prescription formulations)
To pursue reimbursement:
Obtain a diagnosis and a Letter of Medical Necessity (LMN) from your physician specifying the prescribed shampoo and medical purpose.
Purchase the product using your FSA/HSA card if eligible, or pay out of pocket and submit for reimbursement.
Retain receipts, LMN, and any prescription documentation for your records.
Only medicated shampoos prescribed for medical conditions may qualify; regular shampoos and cosmetic hair care products remain ineligible.
