Scar treatments are typically not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA). However, certain medicated or physician-prescribed scar treatments may qualify when used to treat a diagnosed medical condition and supported by a Letter of Medical Necessity (LMN).
Why Are Scar Treatments Usually Not FSA/HSA Eligible?
Most over-the-counter scar treatments are considered cosmetic, meaning they are intended to improve appearance rather than diagnose, treat, or prevent a medical condition. Under IRS Code Section 213(d), cosmetic care does not qualify as medical care.
Products marketed for aesthetic improvement—such as lightening scars, smoothing texture, or reducing discoloration—do not meet eligibility requirements.
According to the SIGIS Eligible Product List Criteria, only products containing an active medical ingredient and intended to treat a medical condition may be eligible.
What’s Not Covered?
Cosmetic scar creams, gels, and serums
Over-the-counter silicone patches not prescribed by a provider
Beauty or skincare products marketed for “scar fading”
Spa or cosmetic dermatology procedures (laser, microneedling, peels)
Any treatment used solely to improve appearance
LMN and Exceptions
Scar treatments may become eligible only when used to treat a medical condition, not for appearance enhancement. A Letter of Medical Necessity (LMN) is typically required.
Scenarios where scar-related expenses may qualify include:
Treatment of post-surgical scars from medically necessary surgery
Scar management following an injury, burn, or trauma
Physician-prescribed silicone sheets or gels designed for wound healing
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Prescription topical treatments containing:
Corticosteroids
Retinoids (e.g., tretinoin)
Silicone-based medical therapy
Onion extract formulations prescribed for scar healing
To pursue reimbursement for medically necessary scar treatment:
Obtain an LMN from your provider specifying the diagnosis and the medical need for treatment.
Purchase the prescribed scar treatment.
Submit the LMN and itemized receipt to your FSA/HSA administrator.
Keep documentation in case your provider requests additional information.
Most cosmetic scar treatments remain ineligible, and only those tied to medical treatment—supported by documentation—may qualify.
