Are Massages Covered Under a Flexible Spending Account?
Navigate Flexible Spending Account (FSA) coverage for massages. Understand IRS rules, medical necessity, and how to claim expenses.
A Flexible Spending Account (FSA) offers a tax-advantaged way to pay for eligible healthcare expenses. Many individuals wonder if common wellness services, such as massages, can be covered through these accounts. The eligibility of massages for FSA reimbursement is not always straightforward and depends on specific criteria established by tax regulations.
Understanding FSA Eligible Expenses
The Internal Revenue Service (IRS) defines “medical care” for FSA purposes in IRS Publication 502. This definition broadly includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease. It also encompasses expenses incurred for the purpose of affecting any structure or function of the body. Many common healthcare costs, such as doctor visits, prescription medications, and dental care, are automatically eligible under these guidelines.
However, not all health-related expenses qualify for FSA reimbursement without additional requirements. Expenses for general health improvement or wellness, like certain nutritional supplements or gym memberships, require specific medical necessity to be eligible. If an expense is not directly for a diagnosed medical condition, it needs a medical professional’s substantiation to be covered.
Qualifying Massages for FSA Coverage
For a massage to be eligible for reimbursement through an FSA, it must be prescribed by a licensed medical professional. This professional could be a doctor, chiropractor, or physical therapist, among others. The massage must be necessary to treat a specific medical condition, rather than for general relaxation or stress relief.
A valid prescription or a Letter of Medical Necessity (LMN) is required to substantiate the medical necessity of the massage. This document should explicitly state the specific medical condition being treated and explain how it will treat the condition. It should also detail the recommended type, frequency, and expected duration of treatment. Massages for general well-being or without a clear medical diagnosis are not covered by an FSA.
The practitioner providing the massage should be licensed or certified in their field. This ensures the therapy is administered by a qualified professional. The focus remains on the medical purpose of the massage, such as alleviating chronic pain, improving mobility due to an injury, or treating a diagnosed circulatory issue.
Documentation and Claiming Reimbursement
Once a massage is determined medically necessary and prescribed, claiming reimbursement from your FSA administrator involves specific documentation. You need to submit both the doctor’s prescription or Letter of Medical Necessity and an itemized receipt from the massage therapist. This ensures the expense meets IRS requirements.
The itemized receipt should contain key pieces of information. It must show the date of service, a description of the service, the total amount paid, and the name of the massage provider. These details allow your FSA administrator to verify the expense. Submission methods often include online portals, mail, or fax, depending on your plan administrator.
Some FSA plans offer a debit card for direct payment at the time of service. However, even with a debit card, you may still be required to submit the prescription and itemized receipt to your administrator later for substantiation. Retain thorough records of all prescriptions, receipts, and submitted claims. This record-keeping is beneficial for tax purposes and if the FSA administrator requests additional information or an audit.