Yes, corneal keratotomy is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when performed to correct a medical vision problem.
Why Is Corneal Keratotomy FSA/HSA Eligible?
Corneal keratotomy is a type of refractive eye surgery that involves making precise incisions in the cornea to improve the way light enters the eye. It has historically been used to treat astigmatism and other corneal irregularities. When performed to correct or improve a diagnosed vision impairment, the procedure qualifies as a medical expense under IRS Code Section 213(d).
According to IRS Publication 502, eye surgeries to treat or correct vision problems are eligible medical expenses. This includes procedures like corneal keratotomy, LASIK, and PRK when they are not performed for cosmetic purposes but to treat a medical need.
FSA- and HSA-eligible expenses related to corneal keratotomy may include:
Pre-operative exams and diagnostic testing
The surgical procedure itself
Anesthesia or sedation used during the procedure
Post-operative care and follow-up visits
Prescription medications or eye drops related to recovery
- Vision correction devices prescribed after the procedure, such as glasses or contact lenses
What’s Not Covered?
The following are not eligible:
Surgery performed solely for cosmetic enhancement (e.g., elective correction of very minor refractive errors without medical indication)
Vision improvement procedures that are experimental or not recognized as medically necessary
Non-prescription eyewear or cosmetic contact lenses
Extended warranties or non-medical service plans
To be eligible, the surgery must be used to treat or correct a vision impairment diagnosed by a qualified eye care provider.
How to Use Your FSA or HSA for Corneal Keratotomy
You can use your FSA or HSA card to pay for qualifying services directly or submit a reimbursement claim after payment. To ensure proper documentation:
Keep itemized bills and surgical center invoices
Retain diagnostic records showing the medical necessity of the procedure
Save any receipts for related prescription medications or vision correction devices
For more information on qualified medical expenses, refer to IRS Publication 502.
