Is Face Wash an HSA Eligible Expense?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for qualified medical expenses. These accounts are available to individuals enrolled in a high-deductible health plan. Contributions to an HSA are tax-deductible, and the funds grow tax-free, with withdrawals also tax-free when used for eligible healthcare costs.

Understanding Qualified Medical Expenses

A qualified medical expense, as defined by the Internal Revenue Service (IRS), refers to costs for the diagnosis, cure, mitigation, treatment, or prevention of disease. It also includes expenses affecting any body structure or function. To qualify, an expense must primarily be for medical care, not general health improvement or cosmetic reasons.

Expenses for general health or cosmetic purposes do not meet the IRS definition. For example, vitamins for general well-being or procedures solely to improve appearance are not eligible. The product or service’s primary purpose must be to alleviate or prevent a specific medical condition.

Over-the-Counter Item Eligibility

The CARES Act made many over-the-counter (OTC) medications and health products eligible for HSA reimbursement without a prescription. This expanded the types of non-prescription items individuals could purchase with HSA funds.

This expanded eligibility applies to products with a clear medical purpose. Items treating a specific ailment, such as pain relievers, allergy medications, or cold and flu remedies, typically qualify. However, not all OTC products automatically qualify; eligibility depends on their primary use for medical care, not general hygiene or cosmetic enhancement.

Face Wash and Skincare Product Eligibility

Face wash and routine skincare products are generally not HSA-eligible. These items are considered cosmetic or for general hygiene, not meeting the IRS definition of a qualified medical expense. Products for cleansing or moisturizing without addressing a specific medical condition are non-eligible.

However, some skincare products, including specific face washes, can become HSA-eligible. This happens when a medical professional prescribes the product to treat a diagnosed medical condition. For example, if a dermatologist prescribes a face wash for severe acne, eczema, or dermatitis, it may qualify. A Letter of Medical Necessity (LMN) from the prescribing doctor is required to substantiate the item’s medical purpose.

Record Keeping and Reimbursement

Thorough record-keeping is essential for documenting HSA-eligible expenses. Individuals should retain all receipts for purchases, noting the date of service or purchase. These records prove the expense if the HSA administrator or IRS requests verification.

For items requiring a Letter of Medical Necessity, keep a copy with the corresponding receipt. When submitting a claim, individuals provide documentation to show the expense meets eligibility criteria. The administrator then processes the claim for reimbursement from HSA funds.