Yes, surgery is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when it is performed to treat or diagnose a medical condition.
Why Is Surgery FSA/HSA Eligible?
Under IRS Code Section 213(d), the cost of medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any structure or function of the body. This means most surgeries that are medically necessary are eligible for reimbursement with FSA or HSA funds.
IRS Publication 502 confirms that surgeries for medical purposes—including inpatient and outpatient procedures—are covered. This includes diagnostic, corrective, preventive, and therapeutic surgeries performed by a licensed healthcare provider.
FSA- and HSA-eligible surgery expenses may include:
Surgeon’s fees
Anesthesia and operating room costs
Pre-operative and post-operative visits
Diagnostic imaging and lab work tied to the procedure
- Inpatient hospital care, if applicable
What’s Not Covered?
The following types of surgery are not eligible:
Cosmetic surgery not related to a medical condition (e.g., elective facelifts, breast augmentation for appearance only)
Experimental or unapproved procedures without sufficient documentation
Reversal surgeries for elective sterilization, such as vasectomy reversal
Associated expenses like transportation or lodging unless they meet IRS travel guidelines for medical care
To qualify, the surgery must be performed for a legitimate medical reason and not primarily for personal or aesthetic purposes.
How to Use Your FSA or HSA for Surgery
You can use your FSA or HSA to pay for eligible surgical costs by:
Using your FSA or HSA card at the time of billing
Requesting an itemized invoice from the provider showing the procedure name and diagnosis
Retaining all medical documentation in case your benefits administrator requests proof of eligibility
Surgical procedures that are part of a physician-recommended treatment plan are typically covered without issue.
For full details, refer to IRS Publication 502.
