Yes, occupational therapy is fully eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when it is prescribed to treat or manage a medical condition.
Why Is Occupational Therapy FSA/HSA Eligible?
Occupational therapy (OT) helps individuals regain or improve skills needed for daily living and work following illness, injury, surgery, or disability. It is considered a qualified medical expense under IRS Code Section 213(d) because it involves treatment prescribed by a licensed provider to manage or improve a medical condition.
According to IRS Publication 502, therapy that is ordered by a doctor and intended to treat a specific medical issue is eligible for reimbursement.
FSA- and HSA-eligible occupational therapy services may include:
OT after surgery, stroke, or injury
Treatment for developmental delays in children
Therapy to manage conditions like arthritis, cerebral palsy, or multiple sclerosis
Rehabilitation to restore fine motor or cognitive skills
Therapy to improve independence in activities of daily living (e.g., dressing, bathing, writing, meal prep)
- In-home, outpatient, or clinic-based sessions when medically necessary
What’s Not Covered?
The following are not eligible:
Therapy not related to a diagnosed medical condition
General wellness or lifestyle enhancement services
Occupational therapy for educational or vocational training only
Services not provided by a licensed occupational therapist
Missed appointment fees or non-itemized charges
To qualify, the therapy must be medically necessary and prescribed by a licensed healthcare provider.
How to Use Your FSA or HSA for Occupational Therapy
You can use your FSA or HSA card to pay for eligible OT sessions at medical clinics, hospitals, or in-home services. If you pay out of pocket:
Obtain a written referral or prescription from your doctor
Request an itemized invoice from your occupational therapist showing the dates and type of service
Submit documentation to your FSA or HSA administrator if reimbursement is required
For more information, refer to IRS Publication 502.
