Skin Tag Removal: FSA Eligibility

Skin Tag Removal: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Spending Account (FSA)
Skin tag removal with a Letter of Medical Necessity (LMN) 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-purpose flexible spending account (LPFSA).

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

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 (MedicineNet.com).

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 professional has provided a Letter of Medical Necessity (LMN).

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.

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