Yes, alcoholism and substance abuse treatment are eligible expenses under a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Is Alcoholism & Substance Abuse Treatment FSA/HSA Eligible?
Treatment for substance use disorders—including alcoholism and drug addiction—is considered medical care under IRS Code Section 213(d). These services are provided to diagnose, manage, and treat a recognized medical condition and therefore qualify as eligible expenses under FSA and HSA guidelines.
According to IRS Publication 502, eligible medical expenses include inpatient and outpatient treatment for alcohol and drug addiction, therapy, and related care provided by qualified professionals or facilities.
FSA- and HSA-eligible services may include:
Inpatient detox or rehabilitation programs
Outpatient substance abuse counseling and therapy
Hospital care related to addiction treatment
Mental health services related to recovery
Prescription medications used in addiction recovery
Transportation to and from a medical facility for treatment
Meals and lodging provided by an inpatient treatment center as part of the medical program
These services are eligible whether treatment occurs in a hospital, clinic, or licensed recovery center.
What’s Not Covered?
The following are not eligible:
Wellness or self-help programs not provided by or affiliated with a licensed medical provider
General life coaching, group support without a medical component, or retreats without clinical oversight
Non-medical recreational activities or amenities offered as part of luxury recovery packages
Travel, lodging, or meals unrelated to the delivery of medical care
To qualify, the service must be focused on the diagnosis, treatment, or mitigation of a substance use disorder and provided by qualified professionals.
How to Use Your FSA or HSA for Addiction Treatment
You can use your FSA or HSA card to pay for qualified treatment programs directly or request reimbursement by submitting receipts and documentation from the provider. To ensure compliance:
Use a licensed facility or provider
Save itemized invoices or statements showing the type of treatment and dates of service
Keep documentation of services received in case your plan administrator requests verification
For more information, refer to IRS Publication 502.
