Maximizing Your Wellness with Flexible Spending Accounts: A Guide
If 2025 is about leveling up your wellness game, let’s chat about how an FSA can make it smoother (and more affordable) to making YOU the priority.
With over 20 years in the field of mental health, I’ve seen countless opportunities overlooked to make wellness services more affordable and a priority. One such opportunity that is often underutilized is the Flexible Spending Account, or FSA. If your workplace offers an FSA as part of your benefits package, it can be a valuable tool to support both your mental and physical health needs without breaking the bank.
What Is an FSA?
An FSA is a tax-advantaged account provided by many employers that allows you to set aside a portion of your pre-tax earnings for medical and wellness-related expenses. These funds can be used for a range of services, including therapy sessions, health screenings, and other healthcare-related expenses that may not be covered by insurance.
The Benefits of Using an FSA for Wellness Services
- Cost Savings Through Pre-Tax Dollars
One of the biggest benefits of an FSA is the tax savings. Because contributions to your FSA are pre-tax, you reduce your taxable income, which can save you money over the
- Easier Access to Preventative Care
With FSA funds at your disposal, it can be easier to access preventive mental health care. Regular therapy, for example, can help mitigate stress, reduce the risk of burnout, and address anxiety or depression before they escalate. Using an FSA to cover these expenses removes some of the financial obstacles that prevent people from seeking help. - Freedom to Choose Your Wellness Providers
Unlike insurance networks that sometimes restrict your choice of mental health providers, FSA funds often give you greater flexibility in selecting a provider who meets your needs. Whether you’re looking for a specific type of therapy or prefer a counselor with a particular background, an FSA allows you to pursue services that align with your personal wellness goals. - Enhanced Financial Planning for Wellness
Setting up an FSA encourages proactive financial planning around wellness. By estimating your annual mental health needs—such as therapy sessions, wellness workshops, or mindfulness classes—you can allocate the funds you’ll need without impacting your monthly budget.
How to Make the Most of Your FSA
To maximize your FSA benefits, consider your wellness goals for the upcoming year and speak with your HR department or a financial advisor to determine the appropriate amount to allocate. Remember that many FSAs have a “use-it-or-lose-it” policy, which means funds may not carry over into the next year. Staying informed on deadlines can help ensure you fully benefit from the funds.
If you have questions about using your FSA for mental health services, feel free to reach out or speak with a professional who can guide you on the best use of these funds to support your unique wellness needs, or if a referral is needed.
Also, check with your plan administrator to verify what’s covered under your specific plan, as rules can very between employers. In some cases you may need a recommendation from your primary care provider.
Services Typically Covered By FSA
- Doctor’s Visits: Co-pays, deductibles, and co-insurance for medical appointments.
- Prescription Medications: Prescription drugs and some over-the-counter medications (with a prescription).
- Medical Equipment and Supplies: Bandages, thermometers, blood pressure cuffs, and other medical supplies.
- Diagnostic Services: Lab tests, X-rays, and other diagnostic services.
- Mental Health: Therapy or counseling, including visits to a psychologist, psychiatrist, or licensed counselor.
- Wellness Programs – hosted by licensed therapist or medical professional
- Chiropractic Care: Treatment provided by a licensed chiropractor.
- Physical Therapy: Costs associated with physical therapy and rehabilitation services.
- Dental Care: Co-pays, deductibles, and treatments like cleanings, fillings, extractions, and braces (though cosmetic dental procedures like teeth whitening are generally not covered).
- Vision Care: Eye exams, prescription eyeglasses, contact lenses, and corrective eye surgery (like LASIK).
- Hearing Aids and Batteries: Hearing aids, batteries, and related equipment.
- Emergency Medical Services: Ambulance services, emergency room co-pays, etc.
- Acupuncture: Treatment by a licensed acupuncturist.
- Dietician – dietician if deemed medically necessary.
- Gym Membership – May vary according to plan
Wellness Made Easy
An FSA gives you freedom to invest in your health in a way that works for you. It’s about saving money and putting your wellness front and center. So, here’s to making 2025 your healthiest, happiest year yet!
