Hair transplants are not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Are Hair Transplants Not FSA/HSA Eligible?
Hair transplant procedures are performed to restore hair growth in areas affected by thinning or baldness. Because these procedures are conducted for cosmetic purposes rather than to diagnose, treat, or prevent a medical condition, they do not qualify as medical care under IRS Code Section 213(d).
According to IRS Publication 502, cosmetic surgery or procedures are only eligible when necessary to improve a deformity resulting from a congenital abnormality, personal injury, or disfiguring disease. Standard hair transplants for male or female pattern baldness are explicitly excluded.
What’s Not Covered?
Surgical hair restoration procedures such as follicular unit extraction (FUE) or follicular unit transplantation (FUT)
Non-surgical hair replacement systems or scalp micropigmentation
Post-surgical maintenance treatments such as PRP (platelet-rich plasma) therapy or laser hair stimulation
Any procedure performed for cosmetic enhancement or aesthetic purposes
LMN and Exceptions
Hair transplants are not eligible under normal circumstances, even with a Letter of Medical Necessity (LMN).
Rare exceptions may exist if the procedure is performed as part of reconstructive treatment following:
Trauma or burn injury resulting in hair loss
Surgery that caused scarring or loss of hair-bearing tissue
A medical condition resulting in disfigurement that impacts function or mental health
In these rare cases, only the portion of the procedure directly related to reconstructive medical care may qualify, and detailed documentation—including physician certification and administrator pre-approval—would be required.
For cosmetic hair restoration or aesthetic improvement, expenses remain fully ineligible for FSA or HSA reimbursement.
