Using Your FSA, HRA and HSA For Massage Therapy
Do you have a Health Savings Account (HSA), Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) through your employer? If you do, these employer-funded plans can be used for massage therapy services. Yup, that’s right, you can use these benefits for a massage!
So before this calendar year closes out, you may want to consider using these available funds to book a massage – especially if unused benefits do not rollover to the next year.
How is Massage Therapy Covered Under Certain Health Savings Accounts?
Massage therapy is no longer a luxury service, it is essential for our overall health and wellbeing. Companies and employers are seeing the benefits of keeping their employees happy and healthy. Most insurance companies consider massage therapy as a legitimate medical expense, but some may want a letter of medical necessity from a doctor.
What is the Difference Between HSA, FSA and HRA?
While each of these health programs allow for tax-advantaged dollars to pay for qualified medical expenses such as massage therapy, there are some differences from plan-to-plan.
Health Spending Account (HSA)
An HSA is linked with high deductible healthcare plans (HDHPs) and are used to help with those high deductibles. HSA is only an option when you are looking for cost assistance with massage therapy if the HDHP is your sole insurance carrier.
Flexible Spending Account (FSA)
Unlike HSA, with an FSA you don’t have to have a HDHP to open an account. Anyone who is employed, but not self-employed, is eligible for an FSA because they are owned by the employer. Unfortunately, you cannot make financial contributions yourself. This account is ideal if you plan to stay with your employer for long term because if you change employers, your FSA account will be forfeited. Unlike HSA accounts these funds which have been accumulating over the year, usually don’t rollover to the next year. So it’s usually a use it or lose it situation.
Health Reimbursement Account (HRA)
An HRA is a different kind of employer-owned account. It doesn’t require an HDHP and is mostly controlled by employers, who also pay for the account. The employer can outline what expenses from the IRS’s list are eligible, including health and long-term care insurance premiums. Employer contributions can vary greatly, but HRAs are a great way to get extra funds without taking anything out of the employee’s paycheck.
Once you figure out if you have one of these accounts or programs and if massage therapy is covered by them; You can either buy a series of massages or prepay your massages for the following year by booking your appointments now.