Using Your HSA or FSA to Cover Health & Wellness Coaching Services
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are pre-tax savings accounts that allow money to be set aside to pay for qualified medical expenses. In describing these expenses, the IRS uses broad language stating “amounts paid for the primary purpose of treating a disease are deductible as medical care.”
This presents the possibility of using HSAs and FSAs to cover the cost of health and wellness coaching (HWC) services. This may apply when the services are specifically used to prevent, treat, or manage medical conditions. This can make HWC services more affordable and accessible to a broader audience.
Here’s how you may be able to make this work for you.
- You need a physician-provided Letter of Medical Necessity (LMN) stating that health and wellness coaching is needed to prevent, treat, or manage a medical condition.
- Check with your HSA or FSA provider to confirm HWC expenses will be covered/reimbursed. You may also wish to check on their documentation and credentialing requirements.
- The coaching services you use must be tied to preventing, treating, or managing a medical condition to qualify.
Note: This does not constitute legal, medical, or financial advice. Do your own research to understand what this means for you before availing yourself of HWC services.
The National Board for Health & Wellness Coaching (NBHWC) has provided the following Sample Letter of Medical Necessity:
