How to Use Your HSA/FSA Account to Pay for Cryotherapy

We accept many payment methods for the cryotherapy & wellness treatments we provide, including payments from HSA/FSA Benefits. This guide is designed to empower you with the knowledge to strategically leverage your HSA & FSA benefits to get the best bang for your buck.

Before we get into it, a gentle reminder: This is not a substitute for professional financial or tax advice. Health Savings Account (HSA) or Flexible Savings Account (FSA) benefits can be complicated, and we want to help make it more accessible for everyone to use. This is meant to be a general overview and educational tool to help you make an informed decision about using your HSA/FSA funds.

For personalized guidance, please consult with your tax advisor.

Overview of HSA and FSA Benefits

In this section, we will demystify two powerful tools at your disposal - Health Savings Accounts (HSAs) and Flexible Savings Accounts (FSAs). Understanding the nuances, eligibility criteria, and benefits of these accounts is important, but not easy.

Navigating the labyrinth of health savings mechanisms can be a daunting task, but don’t worry - Ultra Cryo & Recovery will be here when you're done to help you relax with a soothing cryotherapy session.

Health Savings Account (HSA)

An HSA is a savings account specifically designed for people enrolled in high-deductible health plans, allowing them to set aside pre-tax dollars for qualified medical expenses. These funds can accumulate and even be invested over time, ultimately providing a cushion for medical expenses.

Some eligibility requirements include that you are enrolled in a high-deductible health plan (HDHP), you are not enrolled in Medicare, and that you are not listed as a dependent on someone’s tax return.

Flexible Savings Account (FSA)

FSAs are another valuable tool for managing healthcare costs. These accounts allow you to set aside pre-tax dollars for out-of-pocket healthcare expenses, but unlike HSAs, FSAs are typically sponsored by an employer.

Generally, FSAs are available to employees participating in employer-sponsored health plans. There are no specific eligibility criteria, but the availability and terms may vary based on employer policies and the plan you’ve selected. Check with your or your spouse's employer to verify if these benefits are available to you.

Main Differences of HSAs and FSAs

HSAs:

Ownership and Portability: HSAs are owned by the individual and remain with you even if you change jobs or retire.
Rollover: Unused funds rollover from year to year.
Investment Opportunities: HSA funds can be invested.

FSAs:

Employer Ownership: FSAs are owned by the employer, and you may lose access if you change jobs.
Immediate Availability: The full annual contribution is available at the start of the plan year.
Use it or Lose it: FSAs typically have a "use it or lose it" policy, meaning unspent funds may be forfeited at the end of the plan year, though some plans offer a grace period or allow a certain amount to be rolled over.

Now that you understand more about HSAs and FSAs, you can start leveraging them for cryotherapy services.

Is Cryotherapy a Qualified Medical Expense?

The short answer is yes - we take HSA/FSA payments at Ultra Cryo & Recovery.

The long answer is navigating the eligibility criteria for utilizing your HSA or FSA benefits for cryotherapy involves understanding the IRS’s definition of "qualified medical expenses."

Criteria for "Qualified Medical Expenses"

The IRS outlines specific criteria that an expense must meet to be considered a "qualified medical expense." Generally, these expenses include the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. The expenses should be primarily to alleviate or prevent a physical or mental defect or illness.

Other factors for “qualified medical expenses” can include whether the procedure is recommended by a healthcare professional as a necessary treatment or prevention method for a specific health condition or ailment. Some people might use cryotherapy for general wellness or preventative care, which might not squarely fit within the IRS guidelines unless it's substantiated by a medical practitioner's prescription or recommendation.

Cryotherapy and "Qualified Medical Expenses"

Cryotherapy is a procedure where the body is exposed to extremely cold temperatures for several minutes, offering various health benefits such as reducing inflammation, alleviating muscle pain, and supporting recovery.

The acceptance of cryotherapy as a qualified medical expense often hinges on documentation, which is why we are more than happy to provide detailed receipts.

For a detailed and up-to-date understanding, please refer directly to IRS Publication 502 (Medical and Dental Expenses). This document provides comprehensive insights into which medical expenses are considered qualified for HSA and FSA purposes.

Remember: we are not accountants and neither are our staff. Please consult official resources or seek guidance from a tax professional to determine the eligibility of cryotherapy expenses based on your individual health needs and recommendations from your healthcare provider.

How to Use HSA/FSA Accounts for Cryotherapy

Using your HSA or FSA funds for cryotherapy services at Ultra Cryo & Recovery involves mostly bureaucracy and administrative work.

First you, pay for the services using your HSA/FSA debit card at the point of service. If you don’t have a debit card, you can pay out-of-pocket and seek reimbursement later. Make sure to ask for a detailed receipt if you are not using your card directly.

Always request and securely store detailed receipts of your cryotherapy sessions. Our receipts will include what you need including the date of service, the amount paid, and the name of your provider.

Then, if you paid out-of-pocket, submit a claim to your HSA/FSA administrator for reimbursement. Attach all necessary receipts and documentation to speed up the process and avoid rejection.

There are submission deadlines for reimbursement claims to avoid missing out on your benefits - don't miss them!

By adhering to these guidelines and practical tips, you can smoothly navigate the process of using your HSA/FSA benefits for cryotherapy services, maximizing your healthcare benefits while enjoying revitalizing cryotherapy services.

Strategies for Maximizing HSA/FSA Benefits

Effectively leveraging your HSA or FSA benefits for cryotherapy services requires strategic planning and a sound understanding of your plans policies, including rollovers and grace periods.

Review your past expenses to estimate your future needs accurately.

Consider the frequency and costs of your cryotherapy sessions when setting aside funds in your HSA or FSA. One of our technicians will gladly have you for an intake session to help assess you and give you a quote for the year.

Remember that HSA contributions can be adjusted anytime during the tax year, allowing more flexibility for you.

But since FSAs have a "use it or lose it" policy, plan your contributions carefully in advance so you don't lose out on any money unnecessarily. Some FSAs allow a rollover of up to $610 (as of 2023; please verify the current amount) of unused funds to the next year. Familiarize yourself with your plan’s specific rollover provisions.

Leverage the grace period

Certain FSAs offer a grace period, typically up to 2.5 months after the plan year ends, to incur eligible expenses. Use this period strategically to maximize the use of your funds.

Ensure that you submit reimbursement claims promptly to avoid losing out on your eligible benefits due to missed deadlines or other administrative hurdles.

Keep informed of plans and policies

Keep up to date of tax laws, contribution limits, and eligible expenses to optimize your HSA/FSA benefits continually.

Legislative changes could impact strategies for maximizing benefits at any time.

Common Questions and Misconceptions

HSAs and FSAs are complicated - people usually have a lot of questions and misconceptions. There are gray areas, especially when it comes to using these funds for services like cryotherapy.

Can I use my HSA/FSA for cryotherapy without a doctor's prescription?

One common misconception is that HSA/FSA funds can automatically be used for cryotherapy without any specific medical guidance. That is only true in some cases.

Some insurance carriers require a doctor’s prescription or a Letter of Medical Necessity (LMN) that validates cryotherapy as a necessary medical treatment for your condition to ensure that the expense is deemed qualified by the IRS.
Is every cryotherapy session covered by HSA/FSA?

Not all cryotherapy sessions might qualify for HSA/FSA usage. The eligibility often hinges on whether the sessions are deemed necessary for treating or alleviating a specific medical condition.

General wellness or preventative care sessions may not always be categorized as qualified medical expenses depending on your insurance carrier.

In some cases, you may be limited to the number of sessions that are considered medically necessary, and any extra sessions outside of that are not covered.

In other cases, no sessions are covered without a letter of medical necessity (see "Can I use my HSA/FSA for cryotherapy without a doctor's prescription?")
What happens if I use my HSA/FSA for ineligible cryotherapy expenses?

Utilizing HSA/FSA funds for ineligible expenses could result in tax penalties. The amount spent on ineligible expenses may be subject to income tax and additional penalties.

That's why it's so important to ensure that each expense aligns with IRS eligibility criteria. Ultra Cryo & Recovery staff are not tax professionals and we cannot determine this for you.
Do I really require professional consultation?

The applicability of HSA/FSA funds for cryotherapy might require professional guidance - both from medical providers writing prescriptions, and/or from tax professionals ensuring compliance with IRS rules and regulations.

But if you feel confident you can navigate the rules and regulations on your own there's nothing stopping you.
Can unused HSA/FSA funds be used for cryotherapy for more than 1 year?

For HSAs, unused funds roll over to the next year, retaining their eligibility for qualified medical expenses, including potentially eligible cryotherapy sessions. For FSAs, rollover options are more limited and only some money will roll over while the rest is forfeit.

Understanding how to use Health Savings Accounts (HSAs) and Flexible Savings Accounts (FSAs) for cryotherapy services at Ultra Cryo & Recovery is really important. By now you should know the differences between HSAs and FSAs and how they work.

It may also be necessary to make sure that cryotherapy is a medical need, in which case you will require a note from a doctor. Remember to keep all your receipts and ask for money back on time when you use your HSA or FSA.

Lastly, always plan carefully with these accounts. Make smart choices on how much money to put in, and remember to use it wisely for your health needs like cryotherapy. If anything seems confusing or you're not sure about a decision, get professional tax advice to make sure everything was done correctly.

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