How to make Physical Therapy more affordable; Using a FSA or HSA account for physical therapy services.
Do you have a nagging injury you have been ignoring? Do you have pain which is limiting you from doing the things you enjoy? Have you considered treatment but decided physical therapy was too expensive? Well we have some information for you which may help offset the cost of physical therapy and get you back you doing the things you love.
Be sure to check with your specific plan but according IRS pub 502 physical therapy is an eligible medical expense which qualifies for the use of FSA and HSA account funds.
For those who are not familiar with these terms, Flexible spending account (FSA) and Health Savings Account (HSA) I’ll provide a quick definition.
FSA- A Flexible Spending Account is a special account through your employer in which you put pre taxed money into which you may use to pay for certain out-of-pocket health care costs. Including physical therapy.
The great thing about FSAs is you don’t have to pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside. The biggest draw back is these accounts are what I call “use is or lose it” accounts. You have until the end of the calendar year, Dec 31, 2016 to use your money or else you forfeit those funds back and you never see them again.
HSA- A Health savings account is also a medical savings account offered through some employers. Like FSAs the money you contributed to the account is pre tax, ultimately saving you money you would have paid to taxes. Funds must be used to pay for qualified medical expenses including physical therapy. Unlike a Flexible Spending Account (FSA), funds roll over year to year if you don’t spend them.
So let’s take a look at how this really saves you money and how much. For the below example let’s assume you are in the 28% tax bracket and our current price of $150 per treatment session.
$150 Treatment session
X 28% Federal Taxes
X 7.65% Soc Sec / Medicare deductions
= $53 savings
That brings your relative cost to under $97
Also remember we assist and provide you with receipts to submit claims to your insurance company. Assuming your insurance reimburses 50% (some reimburse 80%) you will be paying close to what a standard co payment is. Plus you get all the benefits of Outcomes Physical therapy: one on one care, full hour sessions and never get passed off to an unlicensed staff to finish your therapy program. And don’t forget better OUTCOMES and faster results.
So if you don’t already have a FSA or HSA ask your employer and start contributing today. For those of you who already have these accounts don’t forget physical therapy is an eligible medical expense and using these funds can help offset your out of pocket physical therapy cost. And most importantly… Those who have a FSA don’t let that money go to waste. Remember FSAs are “use it or lose it” accounts. So call today to schedule your Physical therapy evaluation and use up that FSA money.
Outcomes Physical Therapy
8222 N Lamar Blvd, Austin, TX 78758, Suite F52