Electrolysis

[Guest Nini]

Would electrolysis be covered under a health fsa?

A particular medical condition promotes facial hair growth. Normally, cosmetic procedures would not be covered, but the condtion is due to a specific illness. Would a letter from the doctor explaining the relationship be beneficial?

If you think this can be covered, please provide any authority that you are aware of - thanks.

[Lori Friedman]

You might find it very helpful to read Chief Counsel Advice 200603025, 01/20/06.

Very briefly... Before 1990, the IRS had been interpreting the term "medical care" to include any procedure that permanently altered the form or structure of the body, including procedures that were entirely elective and for cosmetic purposes. The enactment of I.R.C. Sec. 213(d)(9)(A) changed that. Now, a cosmetic procedure is deductible only if it ameliorates a deformity arising from:

(1) congenital abnormality

(2) injury resulting from an accident or trauma, or

(3) disfiguring disease.

If this individual has a valid medical condition that causes disfiguring facial hair growth, I would take the position that her hair removal procedures are deductible under Sec. 213 and, thus, eligible for FSA reimbursement.