Yes, psychiatric care is fully eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when used to diagnose or treat a mental health condition.
Why Is Psychiatric Care FSA/HSA Eligible?
Psychiatric care involves the medical treatment and management of mental health conditions such as anxiety, depression, bipolar disorder, schizophrenia, and other psychological or behavioral disorders. These services are considered qualified medical expenses under IRS Code Section 213(d) because they are used to treat diagnosable health conditions.
According to IRS Publication 502, psychiatric care—including therapy, evaluations, and prescription management—is eligible when provided by a licensed professional and used for medical treatment purposes.
FSA- and HSA-eligible psychiatric services include:
Psychiatric evaluations and diagnostic testing
Therapy or counseling by a licensed psychiatrist
Inpatient or outpatient psychiatric treatment programs
Prescription medication management
- Mental health treatment services provided by a hospital or clinic
What’s Not Covered?
The following are not eligible:
Therapy or counseling not related to a diagnosed mental health condition (e.g., life coaching or personal development)
Services provided by unlicensed or non-medical professionals
Missed appointment fees or administrative costs not tied to medical care
General wellness retreats or group support programs without a medical focus
To qualify, psychiatric care must be medically necessary and provided by a licensed healthcare provider.
How to Use Your FSA or HSA for Psychiatric Care
You can pay for psychiatric services using your FSA or HSA card at the time of your visit. If paying out of pocket:
Ask for an itemized invoice showing the provider, date, and purpose of the visit
Ensure the care is being provided by a licensed medical professional
Submit your documentation for reimbursement if your FSA/HSA provider requires it
For more information, see IRS Publication 502.
