Does FSA Cover Laser Hair Removal?

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax dollars for qualified medical expenses. This employer-sponsored account provides tax advantages, as contributions are deducted from your paycheck before taxes. Funds cover a range of eligible health-related services and products, reducing out-of-pocket spending.

Eligibility for Laser Hair Removal

Laser hair removal is generally not an eligible expense for FSA reimbursement. The Internal Revenue Service (IRS) typically classifies it as a cosmetic procedure, intended primarily to improve appearance rather than treat a medical condition. Cosmetic expenses are usually not covered by FSAs. An exception exists if the laser hair removal is medically necessary to treat a specific illness or condition. For instance, if excessive hair growth (hirsutism) is caused by Polycystic Ovary Syndrome (PCOS), or if the procedure addresses chronic folliculitis, pseudofolliculitis barbae, or ingrown hairs leading to infection or pain, it may qualify.

Documenting Medical Necessity

To substantiate a claim for medically necessary laser hair removal, comprehensive documentation is required by your FSA administrator. The most important document is a Letter of Medical Necessity (LMN), provided by a licensed healthcare provider such as a doctor, physician assistant, or nurse practitioner. The LMN must clearly state the specific medical condition requiring the laser hair removal and detail how the procedure will alleviate or treat this condition, ensuring it is not for general health or cosmetic reasons. The letter also needs to specify the treatment plan’s duration, including start and end dates, and bear the provider’s signature and date. In addition to the LMN, you must provide detailed, itemized receipts from the laser hair removal provider. These receipts should include the provider’s name and address, the date services were rendered, the patient’s name, a description of the services, and the exact dollar amount charged.

Submitting Your FSA Claim

Once you have secured the necessary Letter of Medical Necessity and all itemized receipts, you can proceed with submitting your FSA claim. Most FSA administrators offer several convenient methods for submission, including online portals, mobile applications, mail, or fax. You will typically need to complete a claim form, either digitally or physically, providing basic information about the expense. When submitting, ensure you attach both the completed LMN and your detailed itemized receipts. These documents are essential for the administrator to verify the medical necessity and the cost of the services. After submission, claims generally undergo a processing period, which can range from two to four business days. Funds are typically disbursed within two to four business days for direct deposit or seven to ten business days for a paper check, following claim approval.

General FSA Eligible Expenses

Beyond specific cases like medically necessary laser hair removal, Flexible Spending Accounts cover a broad spectrum of common healthcare expenses. These include co-payments for doctor’s office visits, health insurance deductibles, and co-insurance amounts. Prescription medications and many over-the-counter medications are also eligible, sometimes requiring a prescription. FSAs further cover various dental care services, such as cleanings, fillings, and orthodontia, as well as vision care expenses like eyeglasses, contact lenses, and eye exams. Medical devices, such as crutches or blood sugar monitors, are commonly included. Health insurance premiums remain ineligible for reimbursement.