When Can Massage Therapists Accept Health Savings Accounts?

Before getting to the answer to that question, what exactly is a Health Savings Account (HSA)? Well, the IRS defines an HSA as: “A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA.”


In simpler terms, an HSA is like a personal savings account, but the money in them is used to pay for healthcare expenses. Additionally, you are not taxed on the money you deposit into an HSA, with a maximum contribution of $3400 in 2017. To be eligible to open an HSA, you must be enrolled in a high deductible health insurance plan.


Now, what does an HSA mean for a massage therapist? If you have a client who has a Health Savings Account, they can use the funds from that account to pay for a massage, but only if the massage has been recommended by a physician to treat a specific injury. Generally, treatment for stress, anxiety, or mental health, is unfortunately not covered.


HSA funds continue to roll over year by year and grow, and you own then when you leave your employer. At the age of 65, consumers can withdraw the money for non-qualified medical expenses and pay income tax similar to a traditional IRA distribution.


So, be sure to educate your clients. If you know they have a Health Savings Account and you are treating them for a specific injury, look into the possibility of them paying with their HSA account.