Hair Regrowth or Removal: HSA Eligibility

Are minoxidil and finasteride HSA eligible? 

Minoxidil (Rogaine), finasteride (Propecia), and other hair regrowth treatments are HSA eligible if a licensed healthcare provider prescribes them to treat hair loss due to a medical condition.  

 
When is hair loss treatment HSA eligible? 

Hair loss treatment is HSA eligible with a prescription if it’s used to improve hair growth that’s been affected by a medical condition such as alopecia or chemotherapy.  

Cosmetic hair loss vs hair loss from a medical condition 

Cosmetic hair loss results from natural causes such as male pattern baldness. Treatment for it isn’t eligible for HSA reimbursement. 

Medical conditions, such as alopecia areata, trichotillomania, thyroid disorder, and chemotherapy can also cause hair loss. In these cases, hair loss medications would be eligible with a prescription from a licensed healthcare provider. 

Over-the-counter hair growth products used to treat a condition would require a Letter of Medical Necessity from a healthcare provider to be eligible. Those used purely for cosmetic enhancement (without a prescription or diagnosed condition) are not eligible. 

Does the brand or program matter for HSA eligibility? 

No, the brand of the hair regrowth or removal product doesn’t affect HSA eligibility.  

What should an LMN for OTC hair loss treatment include? 

To be reimbursable with a health savings account, an over-the-counter hair loss treatment without a prescription should be supported by a Letter of Medical Necessity (LMN) that includes:  

• Your name, date of birth, address, and contact information  

• The healthcare provider's name, credentials, and contact information 

• The date  

• Information on your hair loss, including the diagnosed condition that caused hair loss, your medical history, and how long you’ve had the condition 

• Why the hair loss treatment is medically necessary for your health 

• How long the treatment will last 

• The provider’s signature 

Is hair removal HSA eligible? 

Hair removal procedures, such as electrolysis, can be HSA eligible if they’re used to treat a medical condition that causes excessive hair growth, such as hirsutism, chronic ingrown hairs, and hidradenitis suppurativa. 

You’ll need an LMN to show that the hair removal will be used to treat a medical condition. 

Hair removal for cosmetic purposes isn’t eligible. 

Are hair transplants HSA eligible? 

A hair transplant is considered a cosmetic procedure. So it’s generally not HSA eligible unless it treats a deformity caused by a disease or accident. 

As with hair regrowth and removal, you’ll need an LMN to get reimbursed for a hair transplant. 

Can I use FSA funds for hair loss treatment? 

FSA eligibility follows the same rules as HSA eligibility for these products: Hair loss treatments are eligible with a prescription if they’re used to improve hair growth that’s been affected by a medical condition.  

FAQs 

Is dandruff shampoo HSA eligible?  

You may be able to cover the extra cost of dandruff shampoo over the cost of regular shampoo with your HSA.  

To do so, you’ll need an LMN from a healthcare provider explaining why you need the shampoo to treat dandruff. 
 

Is red light therapy HSA eligible?  

Red light therapy can be eligible for HSA reimbursement if it’s used to treat a medical condition, such as skin disorders.   

Red light therapy isn't eligible for reimbursement if it’s used for anti-aging or general wellness.   

Is biotin HSA eligible? 

Biotin can be HSA eligible if a healthcare provider recommends it to treat a medical condition in an LMN.  

Biotin isn’t HSA eligible if it’s used for general wellness.  

References 

Internal Revenue Service. (2024). Publication 502 (2024), Medical and Dental Expenses. 

Reviewed by the Health-E Commerce Compliance Team