You may be ready to begin treating your drug addiction; this decision comes in different ways to different people, and is often accompanied by a kind of relief: A hope that you will finally be able to confront your addiction and begin to build a new way of living.
Part of choosing the rehabilitation program that you wish to participate in is, naturally, deciding how you will pay for this medical treatment.
And if you have a Health Savings Account or HSA, you should know that you can pay for your drug rehab using the funds that you have in your account.
Let’s begin by defining the term HSA: As you likely know, an HSA is best described as a savings account that you use to pay for healthcare expenses. There are 3 things that you should know about HSAs:
- Be definition, an HSA account is filled with money you own, and therefore control: Your employer or insurer does not decide how you spend the money in your HSA account.
- You can retroactively reimburse yourself for medical costs, including those incurred for treatment for an addiction through a drug rehab, as long as the HSA account was opened and funded before you entered rehab and you have the necessary official receipts.
- HSAs are available widely, from various institutions, and it is important to find one with competitive attached fees: If you’d like to compare available HSAs you can do so here.
Let’s dig into the specifics of using your HSA to cover drug rehab:
The IRS has published a document that refers to the use of HSAs to cover drug rehab or inpatient treatment programs: IRS Publication 969 or Health Savings Accounts and Other Tax-Favored Health Plans, where it lays out its rules and regulations for those who have HSAs. You can access this document, in PDF form, here.
Before we go further, you should know that if you need to get into drug rehab now, and you do not already have an HSA, you will have to find another way to finance your treatment. Why? Your HSA has to be set up and funded before it can be used to pay for any immediate medical treatment.
But can I use my HSA to pay for all treatments and costs associated with the drug rehab I choose?
You can use your HSA to pay for drug rehab, including the cost of your meals and lodging while you are undergoing treatment.
If a health care provider recommends that you attend AA or NA meetings, you can pay for transportation costs and fees from your HSA.
Your HSA can be used to pay for treatments and medications that are connected to your drug rehab, like medication, massages, and acupuncture, as long as your healthcare provider recommends them.
What if I don’t have enough money in my HSA to pay for my rehabilitation program?
If you do not have sufficient funds in your HSA to cover the costs of your rehabilitation program, you should pay the outstanding amount out-of-pocket, and after accumulating funds, you can reimburse yourself later. Generally, you request reimbursements from the financial institution managing your HSA account.
Tips for setting up payment for drug rehab through your HSA:
- Rehabilitation centers like Beachway Therapy Center understand that it is difficult to accomplish projects like setting up the financing for your treatment program during what is a time of turmoil in your life. Making the decision to enter a rehabilitation center is, for most people, emotionally exhausting, and coordinating payment for your treatment may seem like an insurmountable task.
- Why not contact the center that you have selected to enter for treatment and ask for their assistance? Beachway Therapy Center, for example, offers you help in setting things up with your HSA: There is a telephone number you can call as a first step in setting up payment for your program.
- Contact the financial institution that manages your HSA: You will be able to speak to someone about your situation.
Are there benefits to using an HSA to pay for drug rehab programs?
There are benefits to using an HSA account to pay for drug rehab programs, but, again, you must have an existing HSA account at the time when you enter your program. So, you cannot pay for your rehabilitation and then set up an HSA account and reimburse yourself.
3 benefits of using an HSA to pay for your drug rehab programs
- An HSA allows you to pay for all parts of your drug rehabilitation program, including treatments such as acupuncture, therapy and herbal therapy. Also, the number your visits to therapists, for example, are not stipulated. Some traditional health insurance plans will cover most of the costs associated with your rehabilitation, say, 90%, but not the total cost.
- Should you have family or friends who would like to contribute funds so that you are more easily able to pay for drug rehab, they can contribute to your HSA, under the guidelines set out by the IRS.
- An addiction to drugs can make it challenging to hold on to a job, and an HSA moves with you as you change jobs, or if you can take time away from work to focus on getting well.
Can anyone set up an HSA?
To set up an HSA, you must meet these conditions:
- You must be enrolled in a high-deductible health insurance plan (HDHP) that is compatible with HSAs.
- You cannot be covered by any other health insurance, as an individual.
- You cannot be covered, or eligible to be covered by your spouse’s healthcare plan, if your spouse’s plan is not an HDHP plan.
- You cannot be claimed as an independent on any other person’s tax return.
- You must be either younger than 65, or not be a participant in Medicare Parts A or B.
- You, or your spouse, must not have a full flexible spending account.
It is tragic when a lack of funding prevents someone from entering a rehabilitation center to treat an addiction. Why not call a rehabilitation center like Beachway Therapy Center, and speak to them about your individual situation?