Can I Use My FSA for Online Therapy?

Exploring ways to cover the cost of therapy without using a health insurance plan? If you have a Flexible Spending Account (FSA), you may be able to use those funds for therapy sessions. But it’s not always easy to understand how these accounts work, especially if you’ve never had one before. 

FSAs allow you to set tax-free money aside to cover some health-related expenses. However certain factors determine what you can use FSA funds for. We’ll explain what these accounts are, what determines FSA eligibility, and how to use your funds for therapy — depending on eligibility. 

Understanding FSAs

What exactly is an FSA? It’s an account that you fund via your paycheck to use for eligible healthcare expenses. The money you put into your FSA is pre-tax — lowering the amount of taxes you pay. 

FSAs have been around since 1978. They were created to help workers pay for certain healthcare expenses. How do they work? You let your employer know how much you want to set aside for your FSA account, and they’ll take that money out of your paycheck before taxes. 

FSAs vs. HSAs: The difference 

You might have heard of HSAs, another type of account used for medical expenses. But they’re not the same as FSAs. In fact, knowing the difference between the two is important for a couple of reasons. 

An HSA, or health savings account, lets you keep the money you put into the account — there’s no expiration on these funds. But with an FSA, your funds typically don’t roll over to the next calendar year. That means you need to use them or risk losing them. 

FSA accounts are tied to your job. If you leave, you may not be able to take the money with you. HSA accounts are for individuals who have a high-deductible healthcare plan from the marketplace. These accounts are member-owned rather than employer-owned.

Is therapy covered by an FSA?

Yes, FSAs generally do include therapy as an eligible expense. But certain factors determine this, such as the type of therapy, type of provider, and medical necessity considerations. 

Every FSA plan can vary in terms of coverage, so it’s best to check the details of your specific plan. You can look over your plan documents or contact your FSA administrator to confirm the details.  

Factors that determine FSA eligibility 

We mentioned briefly that certain factors are used to determine if therapy is eligible for FSA funds. In the following sections, we’ll go over these factors in more detail to help you understand them better. 

Considerations for medical necessity 

FSA funds (and HSA funds) can only be used to cover services that are considered a medical necessity under IRS guidelines. The IRS generally considers therapy a medical expense, so you can typically use FSA funds without getting a letter of necessity from a healthcare provider. 

But you should check with your FSA provider if you have any unique considerations specific to your account. 

Type of therapy 

FSAs cover different kinds of therapy services, such as individual therapy, substance use disorder treatment, and psychiatric care. Note that therapy is covered if it’s received as medical treatment. So, this may not include marriage or couples therapy, for example — but it depends on your plan. 

Other services related to receiving care, such as transportation to and from a provider and dependent care, may also be covered. Some over-the-counter and prescribed medications used for mental health treatment are also included. 

Licensed provider 

No matter what kind of mental healthcare you need, it’s always important to see a licensed provider. These mental health professionals must meet regulations and standards set by the state. This helps ensure you receive quality care.   

Planning to use FSA funds for therapy? You can typically use this coverage when seeing a licensed therapist, psychiatrist, or mental health counselor. Again, check with your FSA administrator for detailed information on which mental healthcare providers are accepted. 

Providing documentation and receipts 

You might not need a letter of medical necessity (LOMN) for therapy sessions. However, you may need this documentation for other kinds of mental health services. Using FSAs usually involves using an FSA debit card to access your funds. 

What if you don’t have an FSA debit card? In this case, you’ll need to pay for your sessions, submit a claim to your FSA administrator, and wait for reimbursement. Make sure you get documentation and receipts for each session. These documents should give info on the kind of service you received and proof of payment for mental health expenses. 

How to use your FSA for therapy 

What is the process like for covering therapy costs with FSA funds? If you’re planning on using these pre-tax dollars, you can expect to go through the following steps:

1. Confirm eligibility: Before booking any sessions, find out if they count as qualified medical expenses. Get in touch with your FSA administrator to go over your FSA plan details and confirm that the therapy services you need are covered. Find out if you need a LOMN for eligibility. If so, make sure you get this letter before going to any sessions. 
2. Find a qualified therapist: Look for a licensed therapist who provides the kind of therapy you need, such as individual therapy or group therapy. Choose a mental healthcare professional who has experience treating the condition or disorder you’re seeking help for, such as anxiety disorders, eating disorders, or depressive disorders. 
3. Keep documentation: Hold onto all documents and receipts from your therapy sessions for your FSA claims. Even if you end up using a debit card, it’s still a good idea to keep this documentation for your own records. Your FSA administrator may ask to see them to substantiate your claims. 
4. Submit claims: Paying out-of-pocket expenses for therapy? In order to get reimbursed, you’ll need to submit FSA claims through your employer. These claims typically include details on the service you received, your provider, the amount owed, and the date of service. Check with your FSA administrator to see how long you have to submit claims after receiving mental healthcare. 
5. Reimbursement process: How do you get your money back if you paid for therapy out of pocket? After submitting your FSA claim, you’ll usually either receive the money you’re owed via direct deposit to your bank account or by check. 

What types of therapy are covered?

FSAs cover different types of therapy — as long as they’re considered medically necessary. Below, we’ll explore some of these different services.  

Individual therapy 

Individual therapy helps people address mental health issues and/or manage mental health conditions or disorders. This usually involves talk therapy, or psychotherapy, sessions led by licensed therapists or counselors. 

People go to individual therapy for many reasons. However, some common issues addressed include anxiety, depression, relationship problems, major life changes, and anger management. 

Family and couples therapy 

Sometimes, couples or families have a hard time handling conflict or addressing other issues in these relationships. Family and couples therapy offers a safe, supportive environment for family members or couples to work through these issues and grow closer. 

Family counseling and marriage counseling are helpful for many issues. It can help couples or family members learn to communicate more effectively and handle conflict in healthier ways. It’s also useful for addressing specific issues, such as infidelity, trust issues, or a family member’s struggles with addiction.

Group therapy 

In some cases, individuals benefit from receiving support in a group setting rather than one-on-one sessions — or in addition to them. Group therapy involves attending sessions with other people who have similar concerns or issues. 

This allows you to share these concerns with others who understand your struggles. Group therapy offers emotional and social support, along with a chance to learn from others — or share your own wisdom with them. 

Online and teletherapy options 

In-person therapy isn’t the only option available when using FSAs. You can choose online therapy or teletherapy instead. This involves meeting with a mental healthcare provider in a virtual setting, such as a video chat. 

Online therapy may offer a more accessible and convenient option for receiving mental health services. You can set up sessions that fit your schedule — and attend them from the comfort of your own home. 

Other eligible medical expenses covered by an FSA

FSAs include several other medical expenses besides therapy. Depending on your FSA plan, you may be able to use these pre-tax funds for any of the following:

• Prescription medications
• Doctor visits 
• Medical equipment 
• Dental and vision care 

Get FSA-covered therapy with SonderMind 

Your FSA may provide a convenient and cost-effective way to pay for therapy. But keep in mind that these funds have an expiration date. Whether you’re looking for individual therapy, couples therapy, or other mental health services, SonderMind can help!

No matter what mental health concerns you’re seeking support for, therapy is a brave and important first step. With SonderMind, you can quickly and easily connect with a therapist you can meet with online or in person. 

Start your journey toward better mental wellness with SonderMind today.