Does FSA Pay for Massage? What You Need for Approval

A Flexible Spending Account (FSA) is an employer-sponsored benefit allowing employees to set aside pre-tax money for qualified medical expenses. This arrangement can lead to tax savings by reducing an individual’s taxable income. FSAs are distinct from Health Savings Accounts (HSAs) and are primarily used for healthcare-related costs not typically covered by health insurance. This article clarifies the conditions under which massage therapy can be considered an eligible expense for FSA reimbursement.

Understanding Eligibility for Massage Therapy

Massage therapy can be eligible for FSA reimbursement, but it is not automatically covered as general wellness. The Internal Revenue Service (IRS) defines qualified medical expenses as costs incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Expenses solely for general health or relaxation are not eligible.

For massage therapy to be considered an eligible expense, it must meet the criterion of “medical necessity.” A qualified healthcare professional must deem the massage essential for treating a specific medical condition. Without this direct link to a diagnosed health issue, the expense is not reimbursable. Examples of conditions that might warrant prescribed massage therapy include chronic pain, injury recovery, muscle tension, or certain stress-related health issues.

A Letter of Medical Necessity (LMN) is often required to substantiate the medical purpose of massage therapy. This letter serves as official documentation from a healthcare provider, explaining why the service is necessary. It differentiates therapeutic massage for a medical condition from massage obtained for general well-being or leisure.

Gathering Necessary Documentation

Specific documentation is essential to support a claim for massage therapy, demonstrating medical necessity and the incurred expense. The primary document is a Letter of Medical Necessity (LMN) from a licensed healthcare provider. This letter should detail the patient’s specific diagnosis and explain how massage therapy will treat or mitigate that condition.

The LMN must include the recommended scope of treatment, such as session number, frequency, and anticipated duration. It should bear the healthcare provider’s name, credentials, contact information, signature, and issue date. An LMN is valid for up to one year, or for the specific period recommended by the doctor. If treatment continues, a new letter may be required.

A detailed receipt for each massage session is also needed. This receipt must state the patient’s name, the massage therapist or provider’s name, the exact date of service, and a service description. The receipt must also show the total expense. Generic credit card slips or canceled checks are insufficient, as they lack these specific details.

Submitting Your Claim

After gathering all required documentation, submit your claim to your FSA administrator. Most FSA plans offer several methods for submission, including online portals, mobile applications, or traditional mail and fax. Review your specific plan’s guidelines to determine the preferred submission method and any associated forms.

When completing the claim form, provide basic information such as your name, service date, and expense amount. Attach copies of your Letter of Medical Necessity and the detailed receipt(s) for the massage therapy sessions. These documents verify medical necessity and service cost.

Upon submission, FSA claims undergo a processing period, ranging from a few days to several weeks depending on the administrator. Reimbursement is issued via direct deposit or mailed check. If you used an FSA debit card, your administrator might request documentation to verify eligibility. Failure to provide it within a specified timeframe (often around 90 days) could result in claim denial and temporary card suspension.