Is Chiropractic Care an FSA Eligible Expense?
Uncover the specifics of using your Flexible Spending Account (FSA) for chiropractic care, including eligible services and documentation.
Flexible Spending Accounts (FSAs) allow individuals to set aside pre-tax money for out-of-pocket medical expenses. Many wonder if chiropractic care qualifies as an eligible expense. Understanding IRS guidelines is important for maximizing FSA benefits for chiropractic treatments.
Understanding FSA Eligibility
Flexible Spending Accounts are employer-sponsored accounts that allow employees to pay for healthcare costs with tax-free dollars. These accounts cover qualified medical expenses as defined by the IRS, helping reduce taxable income. The primary purpose of an eligible medical expense must be to alleviate or prevent a physical or mental disability or illness.
The IRS outlines these definitions in Publication 502, “Medical and Dental Expenses,” the guide for qualified medical expenses. Expenses that are merely beneficial to general health, such as vitamins or a vacation, are not typically covered. Chiropractic care is eligible when it addresses a specific medical need rather than general wellness.
Qualifying Chiropractic Services
Chiropractic services are eligible for FSA reimbursement when for the diagnosis, cure, mitigation, treatment, or prevention of a disease, or for affecting any structure or function of the body. This includes chiropractic treatments for correcting alignment issues and relieving pain. For instance, spinal adjustments and manipulations for conditions like back pain, neck pain, or joint issues are typically eligible.
Diagnostic services like X-rays and other tests performed by a chiropractor to identify the source of pain are covered. Therapeutic exercises, physical therapy, and rehabilitative exercises prescribed by a chiropractor for a specific medical condition can be reimbursed. Pain management tools or orthopedic supports recommended by a chiropractor for a specific condition may also be eligible. However, services performed solely for general health, relaxation, or cosmetic purposes without a specific medical diagnosis are typically not eligible.
Documentation Requirements for Reimbursement
To claim reimbursement for eligible chiropractic services from an FSA, documentation is required. A detailed receipt or statement from the chiropractor is required. This document should include the patient’s name, the provider’s name, the date of service, a description of the service received, and the cost incurred.
In some cases, the FSA administrator may require a Letter of Medical Necessity (LMN). An LMN is a document from a licensed healthcare provider that verifies the specific treatment or item is medically necessary for a diagnosed health condition. This letter should specify the patient’s condition, the recommended treatment, and an explanation of why the treatment is medically necessary. It is important to retain all receipts and supporting documentation, such as an Explanation of Benefits (EOB) from an insurance carrier, in case of an audit.