Can I pay for mental health therapy with my FSA or HSA?
Yes, mental health therapy is an approved expense, but as with all medical services, make sure to save documentation detailing the services rendered in case of an audit. A letter of medical necessity may sometimes be required on a case by case basis, so make sure to check with your FSA/HSA provider to double check your purchase will be covered.
What is mental health therapy (re: FSA/HSA)?
Therapy for mental health, often referred to as psychotherapy or mental health counseling, is a form of treatment for individuals facing various mental health challenges. It involves talking to a licensed mental health professional, such as a psychologist, psychiatrist, or licensed medical/mental healthcounselor, to address emotional difficulties, manage mental health conditions, and develop coping strategies for improved well-being.
Is counseling FSA/HSA approved?
General counseling such as marriage counseling, family counseling, life coaching, etc. are not covered with your FSA/HSA. Eligible mental health therapy (or mental health counseling) differs from general counseling in that it stems from a medical need which is where the line is drawn for qualified expenses.
FSA/HSA eligibility of therapy and counseling with a letter of medical necessity:
There may be unique cases where otherwise ineligible forms of counseling and therapy will be covered if accompanied by a Letter of Medical Necessity (LMN) from a qualified healthcare professional. The Internal Revenue Service (IRS) recognizes the importance of mental health treatment and permits Flexible Spending Account and Health Savings Account funds to cover the cost of therapy when it is prescribed as medically necessary.
Which mental health professional titles qualify for coverage with my FSA/HSA?
In the mental health field, a range of licensed medical health professionals provide diagnosis, treatment, and support for mental health conditions that are FSA and HSA approved. These professionals are typically required to have specialized education, training, and licensing. Here are some examples:
Clinical Psychologists : Licensed psychologists with doctoral degrees (Ph.D. or Psy.D.) who provide therapy and counseling, conduct psychological assessments, and diagnose mental health disorders.
Psychiatrists : Medical doctors (MDs or DOs) who specialize in mental health. Psychiatrists can prescribe medications, conduct therapy, and offer comprehensive treatment plans.
Licensed Clinical Social Workers (LCSWs) : Social workers with advanced degrees and clinical training who provide therapy, counseling, and support for mental health issues. They often work in settings like hospitals, private practice, or community health organizations.
Advanced Practice Registered Nurses (APRNs) with a Mental Health Focus : Nurse practitioners with specialized training in psychiatric mental health (PMHNPs) who can diagnose and treat mental health conditions, prescribe medications, and provide therapy.
Certified Psychiatric Rehabilitation Practitioners (CPRPs) : Professionals who focus on the rehabilitation and recovery of individuals with severe mental illnesses, helping them achieve their personal and vocational goals.
Substance Abuse Counselors : Professionals who specialize in the treatment of addiction and substance abuse issues. They may have various certifications depending on their specific focus and location.