Yes, physical therapy is eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when prescribed to treat a medical condition.
Why Is Physical Therapy FSA/HSA Eligible?
Physical therapy is a rehabilitative medical service used to treat injuries, manage chronic conditions, and restore physical function following surgery, illness, or trauma. When provided for the purpose of diagnosis, treatment, or prevention of a specific medical issue, physical therapy qualifies as a medical expense under IRS Code Section 213(d).
According to IRS Publication 502, amounts paid for therapy as part of medical treatment by a licensed professional are reimbursable through FSA or HSA funds when they are medically necessary.
FSA- and HSA-eligible physical therapy services include:
Injury rehabilitation (e.g., post-surgical recovery, sprains, or fractures)
Treatment for chronic pain or musculoskeletal disorders
Therapy prescribed for neurological conditions or mobility issues
Pediatric physical therapy for developmental delays
Physical therapy for recovery from stroke or cardiac events
What’s Not Covered?
The following are not eligible:
Physical therapy used solely for general fitness, wellness, or athletic performance
Services not prescribed by a medical provider
Non-licensed providers or unverified alternative therapies
Spa, massage, or gym-based sessions not tied to medical recovery
To qualify, the treatment must be prescribed or recommended by a licensed medical provider to address a specific health condition or recovery need.
How to Use Your FSA or HSA for Physical Therapy
You can use your FSA or HSA card to pay directly for physical therapy sessions at a licensed facility. If you pay out of pocket:
Request an itemized receipt showing the provider, dates of service, and treatment type
Make sure the therapy is connected to a diagnosed medical condition
Ask your provider for a written referral or prescription, which may be required by your FSA/HSA administrator
For further guidance, refer to IRS Publication 502.
