5 ways your HSA can support your mental health

Mental health is an essential component of overall wellbeing, yet accessing the appropriate resources can sometimes feel overwhelming. It doesn’t have to be that way. Especially since the Centers for Disease Control affirms mental health and physical health as equally important factors in overall health.¹

When you have a Health Savings Account (HSA) you have several ways to support your mental health. In this article, we’ll walk you through how an HSA can help with your mental wellbeing, including what’s covered, the key benefits, and some easy steps you can take to make the most of it.

How can HSAs be used for mental health?

Relying on your HSA to support mental health for you and your family members allows you to unlock numerous benefits:

• Tax-Free Spending: Save on taxes while funding essential mental health services.²

• Flexibility: Use funds for a wide array of qualified mental health expenses.

• Empowerment: Take control of your financial wellbeing to relieve a potential source of stress.

• Accessibility: HSAs make treatments more affordable, lowering financial barriers to necessary care.

Here are five ways you can use your HSA to promote healing and positive mental health outcomes.

1. Are bills for therapy and counseling services HSA-eligible?

In many cases, yes. If you see a therapist or receive mental health counseling, you may be able to pay the bill with your HSA funds.

According to Internal Revenue Service (IRS) guidelines, therapy or mental health counseling expenses are considered qualified medical expenses (QMEs) if they are tied to a diagnosed medical condition. This includes conditions like anxiety, depression, or post-traumatic stress disorder (PTSD). To qualify, the IRS needs to know the services are tied to more than just general improvement of mental health or stress reduction.

Generally, talk therapy or behavioral counseling with a letter of medical necessity (LMN) may be a QME. However, services like life coaching or marriage counseling usually don’t qualify for reimbursement unless deemed medically necessary. Be sure to speak with your healthcare provider to learn exactly whether your expense is eligible or if it requires an LMN.

If your therapy expense is eligible for reimbursement, you can pay for your sessions with your HSA. Whether you pay directly with an HSA debit card or receive reimbursement from your account, your payments will come straight from your tax-free funds.

2. Can you use HSA funds toward psychiatric care?

Psychiatric care is also an HSA-qualified medical expense. You could pay directly with an HSA debit card or be reimbursed for services like:

• Office visits and consultations with your psychiatrist.

• Psychiatric medication prescribed for mental health conditions.

• Psychiatric hospitalization.

• Travel costs, meals, or lodging for out-of-town psychiatric care.

Keep in mind that amounts that go toward your co-pay or deductible are also HSA-qualified expenses. Again, the advantage of paying with your HSA is that you’ll be using pre-tax funds to satisfy your bills.

3. Does an HSA cover medications used for mental health?

You can use your HSA to pay for medication, including prescriptions from your psychiatrist or general practitioner to manage mental health conditions like anxiety and depression.

Suffer from insomnia? You can also support your mental health through HSA-qualified expenses like over-the-counter (OTC) sleep aids and sleep-deprivation treatments. Sleep disruption treatments under medical guidance may qualify for HSA reimbursement with an LMN.

4. Are fitness programs or health club dues HSA-eligible?

Health club dues are not eligible for reimbursement with an HSA. However, you may be able to use HSA funds to help advance your fitness goals if the fitness program is a treatment for a specific medical condition diagnosed by a healthcare professional. In that case, a fitness program could qualify as an HSA-qualified expense with an LMN. Check with your healthcare provider for more details.

5. Do HSAs support alternative treatments, like massage and acupuncture?

Holistic health can also be part of your mental wellness plan. These therapies can complement traditional treatments and offer additional relief for some mental health symptoms. Alternative mental health treatments, like massage or acupuncture, may also be payable or reimbursable with an HSA provided they’re recommended by a medical professional to treat a specific medical condition.

Acupuncture is eligible for reimbursement with an HSA. However, massage therapy is only eligible for reimbursement with an HSA if you have an LMN. And massages for general wellbeing or relaxation are not covered. Similarly, dietary supplements or vitamins may be eligible for reimbursement with an LMN. For more detailed information on eligible expenses, visit the HSA QME page and search by product or treatment name.

How to make the most of your HSA for mental health

To fully leverage your HSA for mental health care:

• Confirm expense eligibility: Use tools like our HealthEquity QME searchable database to verify which services are eligible.

• Consult a healthcare provider: Request LMNs for non-traditional therapies or expenses.

• Keep records: Save receipts and documentation to ensure easy reimbursement and compliance with IRS requirements.

• Maximize contributions: Contribute the maximum allowable amount to your HSA for tax benefits. HSAs may not immediately come to mind when you think about strategies to improve mental health, but they can be a powerful resource. By providing good savings results and a tax-advantaged way to spend on healthcare, HSAs can do a lot to promote positive mental health.