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Appearance Improvements

Not Eligible

Why aren't appearance improvements eligible for reimbursement?

Appearance improvements, or cosmetic procedures, are defined by the Internal Revenue Service (IRS) as any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Consumer spending accounts like FSAs and HSAs allow account-holders to save money on eligible medical expenses, which prevent or treat a specific medical condition. Cosmetic procedures are not considered eligible medical expenses under Internal Revenue Code 213(d) and are typically never covered under any of these accounts.

However, there are rare cases when these types of procedures may be covered, which will require a Letter of Medical Necessity (LMN) from a doctor for full reimbursement. If the appearance improvement is necessary to improve a deformity due to a congenital abnormality, personal injury/trauma or disfiguring disease, the procedure may be eligible under a flexible spending account (FSA), health savings account (HSA) or health reimbursement arrangement (HRA).