FSA and HSA for Physical Therapy - what you need to know
Many people wonder if physical therapy is HSA or FSA eligible, or if your HSA or FSA will cover all physical therapy services. HSAs and FSAs can be used for most things related to your health. This ranges from certain items in the store to medications to services, such as physical therapy.
Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are similar but operate slightly different from each other. Both FSAs and HSAs can be used for certain out-of-pocket health care expenses, and physical therapy costs are one such expense. You can use FSAs and HSAs to pay for deductible costs and co-pays, but not insurance premiums. FSAs and HSAs are both tax-free, meaning you don’t pay tax on the money that you or your employer puts into these accounts. Since you don’t pay tax on the money you contribute to these accounts, you save the amount of money that you would have paid in taxes on the money you set aside.
Some employers make contributions to FSAs or HSAs, but they are not required to. Some employers decide to make “matching contributions” to what you contribute yourself. There are specific limits and conditions for contributing to both of these types of accounts.
Most of these accounts come with FSA or HSA cards, which function like debit cards, but are limited to purchases for health expenses. When you pay with your FSA or HSA card at Moms in Motion PT, you simply enter the card number into the payment section and we can charge it just like a debit card. This is a very simple and easy way to use your FSA or HSA card!
FSA
In order to use your FSA, you may have to submit a claim to the FSA through your employer. You must have proof of the medical expense and a statement that this expense has not been covered by your health plan. You then receive reimbursement for your costs. At Moms in Motion PT, we will provide you with invoices (called superbills) that have all the necessary information to submit these claims, upon request.
Flexible spending accounts have limits on the amount of money you and your employer can contribute. They usually expire at the end of a plan year (often at the end of the calendar year) and are usually subject to a “use it or lose it” policy. SOME employers allow for a grace period of several months to use FSA dollars or allow for a certain amount to carry over to the next year, but many do not.
HSA
Health savings accounts are limited to High Deductible Health Plans, which are usually plans that only cover preventative services before the deductible. This means that money you have contributed to your HSA can be used to pay for services before the deductible is met and before your insurance will pay for expenses. A large advantage of HSAs is the ability to roll over money from year to year if you do not spend it all. HSAs also have the potential to earn interest, which are not taxable.
So what does this all mean?
Let’s put some numbers to these words, so we can see how much money you can save when you use an FSA or HSA for your physical therapy expenses.
Let’s assume that you are in the 22% tax bracket, and social security and Medicare taxes are about 7.6%.
$225 treatment session
x 22% Federal taxes
x 7.6% SS/Medicare taxes
= 49.50 + 17.10 = $66.60 in savings
So if we are looking at the whole, this means that your relative cost of the treatment session is only $158.40 since you are saving $66.60 that you would have paid in taxes had you not used your account!!
At Moms in Motion PT, we gladly accept payment from FSA and HSAs for your physical therapy expenses! If it is getting close to the end of the year, we don’t want you to lose out on valuable contributions you’ve made to your FSA. When you spend money from your FSA or HSA, you are saving money.
Remember, we can provide you with receipts/invoices to submit claims to your insurance company and to submit for reimbursement from your FSA and HSA. And don’t forget that you are also getting the benefit of convenient, full-hour sessions, one-on-one care, and faster results at Moms in Motion PT!
If you don’t already have a FSA or HSA, make sure to check with your employer and start contributing. If you have one of these accounts, remember that physical therapy is an eligible health care cost and using these funds saves you money!
One more reminder that FSA accounts expire at the end of the year, so call 612-568-2462 today to schedule your physical therapy evaluation and put that FSA money to good use! Or go to our home page, www.momsinmotionpt.com, and click “Become a patient” to schedule your first appointment.
Resources:
https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/
https://www.healthcare.gov/glossary/health-savings-account-hsa/