Is Red Light Therapy Covered by HSA?
Explore if Red Light Therapy is an HSA-eligible expense. Learn the key conditions and documentation required to successfully use your health savings.
Red Light Therapy (RLT) utilizes specific wavelengths of light for various therapeutic applications. Health Savings Accounts (HSAs) are tax-advantaged savings accounts designed to help individuals pay for qualified medical expenses. This article clarifies the conditions under which red light therapy may be considered an eligible HSA expense.
Understanding HSA-Eligible Expenses
Health Savings Accounts are for “qualified medical expenses,” as outlined by Internal Revenue Service (IRS) guidelines. IRS Publication 502 provides information on what constitutes a qualified medical expense, which generally includes costs associated with the diagnosis, cure, mitigation, treatment, or prevention of disease. Expenses must be for the purpose of affecting any structure or function of the body.
Expenses for general health improvement, cosmetic procedures, or items that are merely beneficial for overall well-being do not qualify for HSA reimbursement. For example, while a prescribed medication for a specific condition is eligible, a general vitamin supplement is not, unless recommended by a medical practitioner as treatment for a diagnosed medical condition.
Red Light Therapy and Medical Necessity
Red light therapy can be an HSA-eligible expense if it meets the IRS’s definition of medical necessity. For RLT to qualify, it must be prescribed or recommended by a licensed medical professional, such as a doctor or physical therapist, for the diagnosis, cure, mitigation, treatment, or prevention of a specific medical condition. Common examples of conditions for which RLT might be medically necessary include chronic pain, specific skin disorders like eczema or psoriasis, wound healing, or musculoskeletal conditions such as arthritis.
This requirement differentiates therapeutic use for a diagnosed ailment from cosmetic applications like anti-aging or general muscle recovery without an underlying injury. Expenses for general wellness or aesthetic enhancements are not covered by an HSA. A legitimate medical diagnosis and a healthcare provider’s recommendation for RLT as a treatment are required.
Required Documentation for Reimbursement
To support an HSA reimbursement claim for red light therapy, documentation is necessary to demonstrate medical necessity and the expense incurred. A detailed receipt or invoice for the red light therapy device or service is required, clearly showing the date of purchase or service, the amount paid, and a description of the item or treatment.
A key document is a Letter of Medical Necessity (LMN) from a qualified medical professional. This letter must state the medical condition being treated, explain why red light therapy is medically necessary for that condition, and include recommended duration or frequency of treatment. Alternatively, a formal prescription from a doctor for the RLT device or service for a specific medical condition serves a similar purpose. If the therapy was partially covered by health insurance, an Explanation of Benefits (EOB) from the insurance provider shows the out-of-pocket expense that is being claimed.
Other Health Savings Options
Beyond Health Savings Accounts, other tax-advantaged accounts also cover red light therapy expenses, provided the medical necessity criteria are met. Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) are common alternatives that operate similarly to HSAs regarding qualified medical expenses. Like HSAs, RLT expenses are typically eligible for FSA and HRA reimbursement when prescribed by a medical professional for a specific condition.
While these accounts share the requirement for medical necessity, they differ in other aspects. FSAs, for instance, often operate under a “use-it-or-lose-it” rule, meaning funds typically must be spent within the plan year or a short grace period. HRAs are employer-funded accounts, and the employer sets the rules for how the funds can be used. Despite these operational differences, the principle of requiring medical necessity for red light therapy to be an eligible expense remains consistent across HSAs, FSAs, and HRAs.