Can you use a HSA for skin care?

Let's talk about skin care and your HSA. With the rising costs of skin care products and treatments, you might be wondering if you can use your Health Savings Account to cover these expenses. Here's what you need to know about HSA-eligible skin care in 2025.

Here's how HSAs work

Think of your HSA as a special savings account with tax superpowers. When you put money into your HSA:

• You don't pay taxes on your contributions
• Your money grows tax-free
• You don't pay taxes when you use it for qualified medical expenses

But here's the catch: the IRS has specific rules about what counts as a qualified expense.

Can you buy skincare with HSA?

Let's cut to the chase - most everyday skin care products aren't HSA eligible.

So, here's what you can't buy with your HSA:

• Your daily cleanser and face wash
• Regular moisturizers and lotions
• Toners and serums (even the fancy ones)
• Face masks
• Makeup and cosmetics
• Anti-aging products
• Regular sunscreen

Why? The IRS considers these personal care items, not medical expenses - even if they claim to have health benefits.

When can you use your HSA for skin care?

Your skin care might be HSA eligible when you meet these three requirements:

1. You have a prescription from your healthcare provider
2. You're treating a specific medical condition
3. The main purpose isn't cosmetic

Here's what that looks like in real life:

Prescription medications that qualify

• Tretinoin for acne
• Prescribed treatments for rosacea
• Prescription-strength eczema medications
• Specific medications for psoriasis

Medical treatments that qualify

• Light therapy your dermatologist prescribed
• Medical chemical peels for diagnosed conditions
• Laser treatments for specific skin problems
• Procedures to treat skin cancer or precancerous spots

What's new for 2025?

The IRS has tightened some rules this year:

• You now need a prescription for sunscreen to make it HSA-eligible
• Even over-the-counter medicated products need a prescription
• You'll need more detailed documentation than before

What paperwork do you need?

Before you use your HSA for skin care, make sure you have:

1. A written prescription or letter from your healthcare provider explaining why it's medically necessary
2. Documentation of your specific skin condition
3. Detailed receipts showing what you bought, when you bought it, how much you paid, and who provided it

Common skin care and HSA mix-ups

Here's what doesn't automatically make skin care products HSA eligible:

• Labels saying "medical-grade" or "natural"
• Recommendations from your esthetician
• Using products to prevent skin problems
• Having a dermatologist appointment

Remember: The key is medical necessity for a diagnosed condition.

How to pay for HSA-eligible skin care

When you have qualifying expenses, you've got options:

1. Swipe your HSA debit card
2. Pay yourself back from your HSA later
3. File a claim through your HSA administrator

Smart ways to handle skin care costs

Since most skin care isn't HSA-eligible, here are some other ways to manage these expenses:

• Look into an FSA for certain over-the-counter products
• Check what your health insurance covers
• Use prescription discount programs
• Ask about payment plans at your dermatologist's office
• Check out manufacturer savings programs