Skin Tag Removal: FSA Eligibility

Skin tag removal with a Letter of Medical Necessity (LMN) from a medical doctor is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA). Skin tag removal is not eligible with a dependent care flexible spending account (DCFSA) or a limited care flexible spending account (LCFSA).

What is skin tag removal?

Skin tag removal is the process of removing a skin tag, which is the term for a harmless and benign growth of skin on the body. Skin tags are also called acrochorda. They are technically benign tumors, and they usually grow in spots where skin contacts skin, such as the neck, armpit, groin, and breasts. Skin tags are painless and harmless, though they may present cosmetic or comfort problems depending on the size and location. Skin tags usually grow to the size of a grain of rice or smaller, though some can grow a bit longer than that.

Removal of a skin tag can be done at home or in a doctor's office. Doctors such as dermatologists, general practitioners, or other medical professionals such as nurses can perform a skin tag removal procedure. The procedure may involve cauterization, cryosurgery, excision with a scalpel, or other means. The expense of skin tag removal procedures is considered eligible for reimbursement if a medical doctor has provided a Letter of Medical Necessity (LMN). If the medical doctor has deemed the procedure medically necessary due to concerns related to living a healthy lifestyle or other issues, and not merely cosmetic appearance, then the LMN will allow the expense to be reimbursed with a consumer-directed healthcare account.

Skin tag removal care afterwards is fairly simple and straightforward, and usually requires a bandage and nothing else. Excess bleeding and related wound care may be dealt with as needed by additional bandages, disinfectant, etc.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)


Eligible with Rx

Eligible with LMN

Not Eligible

Specifically Not Covered

If the procedure is for cosmetic purposes, this is not an eligible medical expense.


AZ-PROD-WEB04 8/19/2018 5:45:43 PM