Is an Infrared Sauna Covered by an HSA?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save and pay for healthcare expenses. While HSAs cover traditional medical costs, questions often arise about non-traditional interventions like infrared saunas. Understanding the criteria for qualified medical expenses is essential for proper HSA use.

Understanding HSA-Eligible Medical Expenses

The Internal Revenue Service (IRS) defines a “qualified medical expense” as costs for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatments affecting any part or function of the body. These expenses must be primarily for the prevention or alleviation of a physical or mental defect or illness. Common examples include doctor visits, prescription medications, dental care, and vision care.

Expenses incurred for general health improvement, wellness, or cosmetic purposes are not considered qualified medical expenses. Vitamins or a vacation for general health are not covered. The IRS provides detailed guidance in Publication 502 to clarify what expenses meet these criteria.

Determining Infrared Sauna Eligibility

An infrared sauna is not automatically considered a qualified medical expense for HSA reimbursement. Its eligibility hinges on specific conditions demonstrating medical necessity, rather than general wellness or recreational use. The sauna must be used to treat or prevent a specific medical condition diagnosed by a licensed healthcare professional.

To establish medical necessity, a doctor’s recommendation or prescription is required, often formalized through a Letter of Medical Necessity (LMN). This document from a healthcare provider confirms the infrared sauna is a medical treatment for a diagnosed condition, such as chronic pain, circulatory issues, or certain inflammatory conditions. The LMN should detail the patient’s diagnosis, explain how the sauna treatment alleviates or prevents that specific condition, and specify the duration of the recommended treatment, valid for up to 12 months.

Using Your HSA for Qualified Expenses

Once an expense, such as an infrared sauna, has been determined to be medically necessary and qualified, there are several methods to use HSA funds. Many HSA providers offer a debit card, allowing direct payment at the point of sale for eligible expenses. Alternatively, individuals can pay for the expense out-of-pocket and then reimburse themselves from their HSA. This reimbursement can occur at any time, even years later, provided the expense was incurred after the HSA was established.

Another option involves submitting claims to the HSA administrator for direct payment. Regardless of the payment method, it is important to maintain meticulous records, including receipts, invoices, and any required Letters of Medical Necessity. These records are important for substantiating the eligibility of expenses for tax purposes and in case of an IRS audit.